Rio Tinto Ltd's massive Simandou iron ore project in Guinea is proceeding slower than the mining giant had planned, amid uncertainty over the government's ability to pay its share of infrastructure costs, according to The Australian Financial Review.
According to the newspaper, engineering contractor AECOM is pulling back the resources it devotes to the project at its Perth and Canada offices, and may need to look at job cuts.
Rio chief executive Tom Albanese said last month that Simandou was proceeding much faster than rival projects in the region.
Brazilian mining giant Vale is yet to sign an agreement with the Guinean government over the other half of Simandou.
RIO Price at posting:
$52.89 Sentiment: Hold Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)