Rio Tinto will sell a 35% stake in its Simandou iron-ore project to the government of Guinea, The Wall Street Journal reports. Simfer, a unit of Rio Tinto, will pay $700 million to Guinea to secure the right to mine in two sections of the Simandou deposit. As per the deal, Rio Tinto will also construct a new rail line through Guinea and a port so that iron ore can be loaded on to ships for export. The agreement will also enable Rio Tinto to close a $1.35 billion deal to sell a 44.65% stake in its Simandou asset to Aluminum Corporation of China, which will reduce its own stake to 50.35%.
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