Rio Tinto (NYSE:RIO) has been funding preparatory work at its holdings at the Simandou iron ore project on its own, as its Chinese partners have not yet received government approval on financing, Reuters reported Monday.
Rio (RIO) owns two of four Simandou mining blocks as part of its Simfer joint venture with China’s Chalco Iron Ore Holdings (OTCPK:ACHHY) and the government of Guinea, but it has spent more than $500M so far on developing the project that should have been split with Chalco, according to the report.
Rio (RIO) is concerned its partners may not win approval from China for the funding, a source told Reuters.
Simandou’s its construction delayed has been delayed for years by legal wrangling, Guinea’s political changes and the difficulty and cost of the 600 km of rail and port that must be built to export ore from the mines.
Rio (RIO) had earmarked $800M for its share of the Simandou development in 2023 and ~$2B each year in 2024 and 2025.