RIO TINTO MAY FREEZE TEN billions in iron ore projects
Mining company Rio Tinto is the second largest in the world. It may soon abandon the development of ten billion Simandou iron ore project in Guinea. This opinion was expressed Mahmoud Thiam (Mahmoud Thiam), former Minister of Mines of the country.
According to him, the project is actually `frozen #39;in the near future.
Simultaneously, the company Rio Tinto has determined that the development process continues. At this point already spent $ 2.3 billion on its implementation.
However, the progress of the project is totally dependent on the Government of Guinea, which has committed to invest $ 5 billion to create half of the project related infrastructure. The second part undertakes to build Rio Tinto, which has already contributed $ 501 million to build railways and port.
However, Mahmoud Thiam doubt that the power of the authorities to bring such tools as their search continues for more than two years.
Recall that starting Simandou project is scheduled for 2015.
