RIO rio tinto limited

News: RIO UPDATE 1-Guinea orders Simandou iron ore project works to stop

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    Guinea's mines minister has ordered all works related to the Simandou iron ore mine project to stop after the two companies involved missed an extended deadline to agree a joint venture, a July 3 letter seen by Reuters on Monday showed.

    Moussa Magassouba said Rio Tinto RIO.L and Chinese-backed consortium Winning Consortium Simandou (WCS) had showed a "lack of willingness" to work on a partnership.

    "Despite the significant concessions the Guinean State has been kind enough to make, it is clear the obstruction is being maintained by both your companies, to the detriment of the interests of the project," Magassouba wrote.

    Neither Rio Tinto nor WCS immediately replied to a request for comment on the halt.

    The government had previously given them 14 days to agree a joint venture, itself an extension of a previous deadline. Rio and WCS signed a framework agreement in March which was meant to pave the way to a final agreement.

 
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