Rio’s Guinea Project on Track Despite Code

SMH reported Rio Tinto’s (LSE:RIO,NYSE:RIO) ownership of the Simandou iron ore project in Guinea remains unchanged despite the new mining code.

The market news is quoted as saying,

The state can take as much as 35 per cent of projects, up from 15 per cent previously.

But the change does raise questions over BHP Billiton’s iron ore and alumina ambitions in the country. The reason it is business as usual for Rio is that it previously agreed to a 35 per cent upper threshold for the state when it paid $US700 million to Guinea, as revealed by BusinessDay on Good Friday and confirmed by Rio on Easter Saturday this year.

For the complete market news, click here.