Simandou is a partnership between between Rio Tinto, the Government of Guinea, Chinalco's subsidiary Chalco and the World Bank's International Finance Corporation (IFC).
In April 2011, Rio Tinto and the Government of Guinea a Settlement Agreement that secures Rio Tinto's mining title in Guinea and gives the Government of Guinea the right to take a stake of up to 35 per cent in Simfer SA (the mine) and a 51 per cent stake in the project infrastructure (railway and port).
In April 2012, Rio Tinto and Chalco completed the formation of a joint venture, which covers the development and operation of Simandou. Rio Tinto and Chalco now hold a 53 per cent and 47 per cent interest respectively in the JV which translates into a 50.35 per cent and 44.65 per cent interest in the Simandou project. The remaining five per cent is held by the International Finance Corporation, part of the World Bank.
Rio Tinto and Chalco now hold a 50.35 per cent and 44.65 per cent interest respectively in the Simandou project. The remaining five per cent is held by the IFC.
April 2011: Rio Tinto and Government of Guinea sign Settlement Agreement. Simfer will pay US$700 million to the Government of Guinea upon granting the mining concession and the approval of a proposed Chalco and Rio Tinto Simandou joint venture.
October 2011: Rio Tinto approves US$211 million for continued studies and US$1.117 billion of funding for commitments for early works.
April 2012: Rio Tinto completes formation of Simandou joint venture with Chalco. Chalco makes an earn-in payment of US$1.35 billion.
June 2012: A further US$1 billion investment in the development of Simandou.
The total amount spent or committed to the Simandou project to date is over US$3 billion, including the US$700 million settlement payment.