Rio Tinto and Chinalco confirmed plans to form a partnership to develop a rich iron ore deposit in Guinea, expected to be the first of a number of joint ventures between the Anglo-Australian miner and its biggest shareholder.
They have agreed the non-binding joint venture despite Rio losing half of the Simandou concession area last year, amid the Guinean government's frustration that Rio had taken too long to develop the deposit.
The Chinese state-owned aluminium producer said it would invest $1.4bn (￡932m) in the early stages of the Simandou project in return for a 47 per cent stake in a new company alongside Rio with 53 per cent. The partnership will cover mining as well as the construction of rail and port infrastructure in a project that analysts believe could cost $12bn.