Aluminum Corporation of China (Chinalco, ACH.NYSE, 601600.SH, 2600.HK) will sign a contract on Thursday to pay US$1.35 billion for a stake in the Rio Tinto (RTP.NYSE, RIO.LSE, RIO.ASX) Simandou iron ore mine in Guinea, Bloomberg reported. Chinalco’s shares were suspended from trading Wednesday pending the finalizing of the deal. Under the previously agreed non-binding accord, Chalco will gain a 44.65% stake in the mining project by financing development over the next two to three years. As for Rio Tinto, the Australian mining firm has already invested US$600 million in the Simandou project, and said in 2007 that it was prepared to invest a total US$6 billion. The firm describes Simandou as the "top" undeveloped iron-ore deposit in the world. Chalco’s shares are expected to resume trading on July 30.
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