Thursday, July 23, 2009

Rio Tinto Accused Over Guinea Iron Ore Mine

Rio Tinto Plc, the world's No. two mining company, was accused by the Guinea government of defying its authority and threatening civil peace in a dispute over an iron-ore mine, the London-based Times reported.

The accusation was contained in a June 26 letter by Mahmoud Thiam, Guinea's mines and energy minister, to Rio Chairman Jan du Plessis and Tom Albanese, the chief executive officer, and puts in question the future of the Simandou mine, one of the Anglo-Australian company's most important development projects, the newspaper said.

Guinea revoked half of Rio's licenses for Simandou in December; the company challenged the decision and has refused to move its equipment from the disputed area, the Times said.

In its response to the minister's letter, Rio said it has indicated its wish to conduct discussions in good faith and is confident of its legal standing, the newspaper added.

Source: Bloomberg

No comments: