Chinalco and Rio Tinto join forces on Simandou project

    April 16, 2010 | BY

    clpstaff &clp articles

    Aluminium Corporation of China (Chinalco) has formed a joint venture with Australian mining giant Rio Tinto by entering into a memorandum of understanding…

    Aluminium Corporation of China (Chinalco) has formed a joint venture with Australian mining giant Rio Tinto by entering into a memorandum of understanding (MOU). They will jointly develop and operate the Simandou iron ore project in Guinea.

    Rio Tinto holds a 95% stake in the Simandou project and the International Finance Corporation holds the remaining five. Under the MOU, Chinalco will pay US$1.35 billion on an earn-in basis to acquire a 47% joint stake in the joint venture entity.

    A Beijing-based Baker & McKenzie team led by partners Stanley Jia and Andrew Lucas advised Chinalco. Allens Arthur Robinson represented Rio Tinto.

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