Wednesday, 05 Oct 2011
Vale SA is working on an accord with the Guinean government in which the Brazilian miner would concede 35% of its Simandou iron-ore project to the government, in line with the West African country's new mining laws.
The Vale manager said the company expected deal with Guinea would be in the same mold as an agreement struck in April between Rio Tinto and the government over the Anglo-Australian company Simandou project.
Guinea last month announced adoption of a mining code that allows the government to increase its participation in projects run by commodities companies operating in the country to 35% from 15%. The new law is an effort to boost revenue from the country rich iron ore and bauxite resources. Iron ore is a crucial ingredient in steel.
Vale late last year said that developing the high-quality Simandou project in which it is a majority partner in a joint venture with a Guinean company will allow the Brazilian company to consolidate its leadership of the global seaborne market for high-grade iron ore.
Vale said it is spending USD 861 million this year on developing its Simandou project. The project is expected to start producing two million tonnes a year in the second half of next year rising to 15 million tons a year in 2015 and full capacity of 50 million tons a year in 2020.
Vale also is investing in rail infrastructure in Guinea to transport the ore.
(sourced from wsj)
Vale SA is working on an accord with the Guinean government in which the Brazilian miner would concede 35% of its Simandou iron-ore project to the government, in line with the West African country's new mining laws.
The Vale manager said the company expected deal with Guinea would be in the same mold as an agreement struck in April between Rio Tinto and the government over the Anglo-Australian company Simandou project.
Guinea last month announced adoption of a mining code that allows the government to increase its participation in projects run by commodities companies operating in the country to 35% from 15%. The new law is an effort to boost revenue from the country rich iron ore and bauxite resources. Iron ore is a crucial ingredient in steel.
Vale late last year said that developing the high-quality Simandou project in which it is a majority partner in a joint venture with a Guinean company will allow the Brazilian company to consolidate its leadership of the global seaborne market for high-grade iron ore.
Vale said it is spending USD 861 million this year on developing its Simandou project. The project is expected to start producing two million tonnes a year in the second half of next year rising to 15 million tons a year in 2015 and full capacity of 50 million tons a year in 2020.
Vale also is investing in rail infrastructure in Guinea to transport the ore.
(sourced from wsj)
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