Rio seeks Chinese, Middle East partners for $18B Guinea project

|About: Rio Tinto plc (RIO)|By:, SA News Editor

Rio Tinto (RIO +0.5%) is in talks with potential partners from the Middle East and China to seek financing for its $18B Simandou mine project in Guinea, FT reports, in what could be a model for miners to fund the soaring cost of developments.

Rio owns rights to part of Simandou while the other half of the deposit is controlled by a consortium made up of Vale (VALE) and BSG Resources; Simandou is considered one of world’s highest quality iron ore deposits but is not viable without a rail link to the coast for shipment of mined ore.