SYDNEY: Global mining giant Rio Tinto says it is set to finalise a $20bn deal to develop the world’s biggest untapped iron-ore deposit in Guinea later this month following years of delays.
The Simandou iron ore project, which could create Africa’s biggest-ever infrastructure venture, will boost Guinea’s annual revenue by $1.2bn through income tax and royalty payments and pump billions more into the nation’s economy, Rio chief executive Sam Walsh said.
“Later this month, we expect to sign the investment framework that formalises our partnership with the government of Guinea, Chalco and the IFC,” Walsh said in a speech in Washington on Saturday and uploaded on to the company’s website Monday.
“This has taken some time to bring to fruition and I think this signing will inject the project with renewed momentum,” he added in the speech on infrastructure investment in developing countries, a key theme of this year’s G20 meetings chaired by Australia.
Walsh said the “remarkable project” would see billions of dollars invested in developing infrastructure in one of Africa’s poorest nations, which is still recovering from decades of military dictatorships and misrule.
AFP
