Rio Tinto Ltd
(ASX:RIO) has announced it will invest US$170 million for the next stage of the Simandou iron ore project in Guinea.
The global miner says it will use the funding for mine, rail and port infrastructure work.
The investment will take effect immediately and comes in addition to US$650 million already spent on exploration, community development and evaluation.
Chief executive iron ore, Sam Walsh says Simandou will be the largest integrated iron ore mine and infrastructure project ever developed in Africa.
Rio Tinto last week signed an agreement with Chinese company Chinalco’s subsidiary, Chalco, under which a joint venture to develop and operate the Simandou iron ore project will be established.
The miner says they expect mining operations to start within five years.
Rio Tinto reported a net profit of $5.4 billion for the year ended 30 December 2009.
