SYDNEY, Mar. 19 -- Anglo-Australian miner Rio Tinto (RIO.AX: Quote) has signed an agreement with Chinese metals group Chinalco to jointly develop the Simandou iron ore project in Guinea, Rio Tinto said on Friday.
The venture between Rio Tinto and Chinalco would mark a turnaround for the companies after Rio last year scrapped a $19.5 billion equity and asset tie-up with the state-owned Chinese firm in a falling-out that also hurt Australia-China relations.
Under the deal, Rio Tinto would put its current 95 percent holding in Simandou into the new joint venture. Chinalco would invest $1.35 billion for a 47 percent stake in the venture, an effective 44.65 percent interest in the project itself.