Rio's Deal With Chalco Is Not Recognized by Guinea, Minister Thiam Says
July 30 (Bloomberg) -- Gavin Wendt, a senior analyst with MineLife Co. Ltd., talks with Bloomberg's Susan Li from Sydney about Aluminum Corp. of China Ltd.'s agreement to pay $1.35 billion for a stake in Rio Tinto Group's Simandou iron ore project in Guinea. Chalco, as the Beijing-based company is known, will acquire a 44.65 percent stake by funding development over the next two to three years, the companies said in a joint statement. (Source: Bloomberg)
Guinea does not recognize Rio Tinto Group’s agreement to sell a $1.35 billion stake in the Simandou iron ore deposit to Aluminum Corp. of China Ltd., known as Chalco, Mahmoud Thiam, Guinea;s mines minister, said in an interview in Conakry, the capital, today.
While Guinean government approval is not a condition for the formation of the joint venture Rio continues to consult the government, a spokesman for the company said.
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