RIO Tinto has settled a long-running dispute over a major iron ore project by agreeing to pay $700million (?425million) to the government of Guinea, West Africa, to secure its rights.
The move clears the way for a $10billion investment in the southern blocks of the giant Simandou project in partnership with Chinese group Chalco. The first iron ore is expected to be shipped by the middle of 2015.
Rio was stripped of the northern half of the Simandou concession in 2008 after Guinea claimed it had not pressed ahead with mining. The government last year warned Rio it might have to surrender the southern half under “use it or lose it” rules.
Rio Tinto iron ore boss Sam Walsh said: “The agreement gives us the ?certainty we need to allow us to invest and move forward .”
Lansana Conte was in charge of Guinea at the time Rio was stripped of the ?northern blocks.
They have since been sold to BSG, controlled by Israeli billionaire Beny Steinmetz. He then sold on a majority stake to Brazilian mining giant Vale.
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