Rio completes Guinea venture with Chalco

LONDON | Wed Apr 25, 2012 4:51am EDT

LONDON (Reuters) - A consortium led by China's Chalco, the listed arm of state-owned aluminum giant Chinalco, has finalized its joint venture with global miner Rio Tinto (RIO.L) to operate the Simandou iron ore project in Guinea, making a $1.35 billion earn-in payment.

Rio (RIO.AX) said the move followed the completion of all Chinese regulatory approvals.

Rio and the Chalco (2600.HK) consortium now own 50.35 percent and 44.65 percent in the Simandou project respectively, with the remaining 5 percent held by the International Finance Corporation (IFC), an arm of the World Bank.

Rio said in a statement that the government of Guinea retained its option for participation and was "expected to take up its first share in the near future".

(Reporting by Clara Ferreira-Marques, Editing by Rosalba O'Brien)