Inform

Chinalco to buy Simandou iron ore project from Rio Tinto

Get this report

$700

You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- Available as part of a subscription
- FAQ's about online orders

31 October 2016

Chinalco to buy Simandou iron ore project from Rio Tinto

Report summary

On 28 October 2016, Rio Tinto announced a non-binding agreement to sell its 46.6% stake in the Simandou iron ore project in Guinea to Chinalco. For Rio Tinto, divesting Simandou is an opportunity to recoup much of the capital it has sunk into the project. But it means losing control of when the mine is developed and its market power will erode if a fifth major iron ore producer emerges. For Chinalco, it will secure one of the world's largest and highest quality iron ore deposits. Simandou also fits with Chinese strategy of building infrastructure in developing countries and increasing captive overseas iron ore sources. Chinalco owning Simandou provides a better chance of the project being developed but could also exert downward pressure on seaborne prices and force higher cost producers to withdraw.

Table of contents

  • Chinalco to buy Simandou iron ore project from Rio Tinto

Tables and charts

This report includes 1 images and tables including:

  • Seaborne iron ore cost curve 2030 (CFR China)

What's included

This report contains:

  • Document

    Chinalco to buy Simandou iron ore project from Rio Tinto

    PDF 969.92 KB

Other reports you may be interested in

Browse reports by Industry Sector