Chinalco, Rio Tinto announce Guinea JV agreement

March 22, 2010- It is reported that Aluminum Corp of China (Chinalco) will invest US$1.4 billion in return for a 47% stake in a joint venture (JV) with Rio Tinto in Guinea. The partnership, expected to be the first of several JVs between the Anglo-Australian miner and its biggest shareholder, will cover mining and infrastructure at the Simandou project.

Analysts believe the entire project could cost US$12 billion to develop. Although four Rio Tinto employees, including Stern Hu, an Australian national who was the company's senior iron ore salesman in China, face charges in a Shanghai court Monday that they stole commercial secrets and took bribes, Rio's top management has suggested it might extend ties with Chinalco.

In a note to clients, Citi said the two firms might cooperate on the Weipa bauxite mine in Queensland and the Oyu Tolgoi development in Mongolia.