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Reuters reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) plans to seek funding for its Guinea-based Simandou iron ore project even though it’s had to write down its value due to poor iron ore prices.
Reuters reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) plans to seek funding for its Guinea-based Simandou iron ore project even though it’s had to write down its value due to poor iron ore prices.
As quoted in the market news:
The world’s No. 2 miner on Thursday reported a net loss of $866-million last year, hammered in large part by a $1.1-billion writedown of the $20-billion Simandou project, considered the world’s biggest untapped iron-ore deposit.
But Rio Tinto, investors and advisers said this would not impede the hunt for funding or the timing of the project, which could have a major impact on Guinea’s flagging economy.
“This is just an accounting adjustment,” said Rio Tinto’s Alan Davies, president of the Simandou project. “Today’s decision has no impact on the timing of the project.”
Simandou comprises an iron-ore mine in central Guinea, a 650 km (404 mile) railway and a deepwater port on the West African country’s Atlantic Coast. Its development already involves a number of international investors and developers.