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China Firms to Build Simandou Ore Facilities-Report
Aug 13, 2010 13:57CST
Source:SMM

SHANGHAI, Aug. 13 -- Two Chinese construction firms will build transport facilities for an iron ore project in Guinea operated by Aluminum Corp of China Ltd (Chalco) (2600.HK: Quote) and Rio Tinto (RIO.AX: Quote), the world's largest iron ore miner, Caixin reported on Friday.

China Railway Construction Corp (601186.SS: Quote)(1186.HK: Quote) and China Communications Construction Company (1800.HK: Quote) will build railway and port facilities for the Simandou iron ore project, the magazine cited sources from the two companies as saying.

Chalco, China's biggest aluminium producer, has agreed to invest $1.35 billion to take a 47-percent stake in the Simandou project under a joint venture, partnering with Rio Tinto, which claimed it as the world's largest iron ore deposit and expected production within five years.

However, the details of the cooperation have not been decided, an unspecified source from China Railway Construction was quoted as saying.

The two construction companies are also likely to take some part of a stake held by Chalco on the joint venture and details would be unveiled in the next few months, it added.

Rio reckons the Simandou deposit holds 2.25 billion tonnes of ore, a key ingredient in steel making. The project is forecast to cost $6 billion.

 

CHALCO
iron ore

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