Monday, March 15, 2010

Rio Tinto, Chinalco In Talks Over Guinea Iron Ore Field

Rio Tinto and Chinalco are in discussions regarding the development of the vast Simandou iron ore field in Guinea.

Talks have been taking place in Beijing ahead of a visit to China this weekend by Rio Tinto chief executive Tom Albanese.

Any deal is likely to see Chinalco finance the next stage of pre-development, while Rio will remain the senior partner in the venture.

The two were in talks last year about a $19 billion tie-up, but the deal fell apart last June amid recriminations on both sides. However, it seems the Chinese have kept the door open for other types of co-operation. Repairing relations is a top priority for Mr Albanese while Chinalco president Xiong Weiping has refrained from publicly criticising Rio.

Meanwhile, a report by a Chinese government body failed to apportion blame for the talks’ failure to either party. The State Council's Development Research Centre added "The failure of the merger did not mean no other co-operation opportunities existed, or the breaking of mutual relations."

The two companies are believed to have discussed iron ore exploration in China and bauxite and alumina refining interests in north Queensland.

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