Fri Oct 21, 2011
LISBON Oct 21 (Reuters) - Mining giant Rio Tinto is negotiating with Portugal's government for a concession to mine iron ore in the north of the country in an investment worth more than 1 billion euros, sources close to the talks said on Friday.
The investment in the mines of Torre de Moncorvo would represent a big boost for the country, which sorely needs foreign investment at a time of deep recession, as it cuts spending to meet budget goals under a 78 billion euro ($107 billion) bailout.
Two sources with knowledge of the negotiations said an agreement should be reached by year-end.
The mines in Torre de Moncorvo were deactivated in the 1980s as they were not economically viable at the time. But Portugal has rich mineral deposits, including copper in the south of the country.
The economy ministry would not say if it was in talks with Rio Tinto, but a spokeswoman said "we are developing contacts and negotiations with various companies, some of them from the mining sector, to attract big investments to Portugal".
Rio Tinto would not comment.
(source Reuters)
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