Rio Tinto says dispute with Vale won’t affect $20B Guinea plan


Rio Tinto (RIO +0.7%) seeks to assure the government of Guinea that its dispute with Vale (VALE) over rights to the world’s biggest untapped iron ore deposit won’t affect its plan to build a mine estimated to cost $20B.

Rio reportedly is telling officials that the dispute is a damages claim and not a claim for reinstatement of the mining titles in question, and will not impede the timely development of the Simandou project.

Analysts say the mine could produce as much 100M metric tons/year.

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Comments (2)
  • 6151621
    , contributor
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    Just what the market needs .. More iron ore!
    15 May 2014, 03:29 AM Reply Like
  • Cash McCall
    , contributor
    Comments (157) | Send Message
     
    What you clearly don't understand about Iron ore is that mines stop functioning so the companies always have to be out looking for more. This Guinea deal is absurd. Guinea has no infrastructure or roads or rail to move any product. The country has a coup ever two years. It is unstable and a rather stupid place to go for coal. VALE and RIO need to tell Guinea to go mine their own ore and keep out of Africa which is nothing shy of an uncivilized disaster.

     

    But you notion of a glut of iron ore is mistaken. There is a 3% slowdown in the global economy and about 5% slowdown in emerging markets so ore fluctuates with this. Vale stock is at a five year low. They are the lowest cost producer, the highest quality ore, and pay over 9% div and own 76% of the global ore markets. They also have the biggest ships.
    19 May 2014, 01:41 AM Reply Like
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