Rio loses key mine rights
Bid target Rio Tinto has lost control of one of its most important iron-ore projects that could generate annual sales of more than $10bn (£5bn), it was revealed yesterday.
The Government of Guinea has told Rio that its licence to mine Simandou, one of the world’s largest undeveloped iron-ore deposits, has been rescinded.
The company’s London-listed stock ended the day 4.8 per cent lower at 4,805p.
Rio Tinto, the world’s second largest miner, said that the Simandou project holds up to 2.25bn tonnes of iron ore.
Chief executive Tom Albanese said in May: “Simandou is, without doubt, the top undeveloped iron ore asset in the world.”
The Simandou iron-ore field has become one of Rio’s most important development projects and a key defence against a £70bn hostile bid from BHP Billiton, the world’s largest miner.
Rio has maintained that investors have undervalued the Guinean project and, as a result, the BHP Billiton offer is too low.
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