Simandou South: Investment Framework

RNS Number : 0082I

Rio Tinto PLC

26 May 2014

 



Simandou South: Investment Framework UKLA rule obligations

26 May 2014

Rio Tinto releases to the London Stock Exchange a notice relating to the media release http://www.riotinto.com/media/media-releases-237_10508.aspx issued jointly on the 26^th May by the Government of Guinea and its partners, Rio Tinto, Chinalco and the IFC in relation to signing of the Investment Framework for blocks 3 and 4 of the Simandou project.

In connection with this signing, on 26 May 2014, certain Rio Tinto subsidiaries, including the joint venture company for the Simandou project Simfer Jersey Limited, entered into a separate agreement with Chalco Iron Ore Holdings Limited ("CIOH"), a subsidiary of Chinalco. Under the UK Listing Authority listing rules, each of CIOH and Simfer Jersey Limited are considered to be related parties of Rio Tinto plc and the agreement therefore falls within UK Listing Authority listing rule 11.1.10R.

The agreement clarifies certain of the parties respective rights (including withdrawal rights) in relation to the project as a result of the development of the Conventions referred to in the media release.  As the Conventions include specific termination rights by the Government of Guinea in respect of the project, the parties have also determined that any compensation received by Simfer Jersey Limited pursuant to such rights, if ever enacted, should be subsequently divided between the joint venture participants proportionate to their respective contribution to historical project costs. The consolidated gross assets of the Simandou project in the Rio Tinto group accounts were US$1.73 billion as at 31 December 2013. The parties have re-affirmed their continued support for the Simandou project and the implementation of the necessary programme of works for its delivery through the agreement and no monetary consideration is payable pursuant to the agreement itself.

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Media Relations, EMEA/Americas Illtud Harri T [phone] M [phone] David Outhwaite T [phone] M [phone] Investor Relations, EMEA/Americas Mark Shannon T [phone] M [phone] David Ovington T [phone] M [phone] Grant Donald T [phone] M [phone]	Media Relations, Australia/Asia Bruce Tobin T [phone] M [phone] Matthew Klar T [phone] M [phone] Investor Relations, Australia/Asia Christopher Maitland T [phone] M [phone] Rachel Storrs T [phone] M [phone] Galina Rogova T [phone] M [phone]
Rio Tinto plc 2 Eastbourne Terrace London W2 6LG United Kingdom T [phone] Registered in England No. 719885

 

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