This agreement, which paves the way for first shipment of iron ore by mid-2015, relates to the southern concession of Simandou, known as blocks 3 and 4, which is the location of Rio Tinto’s declared iron ore resources in Guinea.
In recognition of the resolution of all outstanding issues and finalization of new investment agreement terms, Simfer will pay $700m to the Guinean Public Treasury upon promulgation of presidential decrees granting its mining concession and the approval of the proposed Chalco and Rio Tinto Simandou joint venture.
The parties have agreed that the terms of the settlement agreement will not be affected by any changes introduced by the Government of Guinea as a result of its current review of the Mining Code or any future reviews.
The Government of Guinea plans to set up a state mining company to hold its stake.
