LONDON (dpa-AFX) - Rio Tinto has announced that all conditions for its
investment to develop the Simandou high-grade iron ore deposit in Guinea have
been satisfied, including the necessary regulatory approvals from Guinea and
China. The transaction is expected to be completed during the week of 15 July
2024.

Alongside the recent approval by the Board of Simfer, this approval enables
Simfer to invest in and fund its share of the co-developed rail and port
infrastructure, a collaborative effort with Winning Consortium Simandou (WCS),
Baowu, and the Republic of Guinea.

As per the terms of the transaction, Simfer will acquire a participation in the
WCS project companies constructing rail and port infrastructure, commit to
perform a portion of the construction works itself and commit to funding its
share of the overall co-developed infrastructure cost, in an aggregate amount of
approximately $6.5 billion (Rio Tinto share approximately $3.5 billion).

Chalco Iron Ore Holdings Ltd (CIOH) has now paid its share of capital
expenditures incurred or required by Simfer to progress critical works up to
completion.

The co-developed infrastructure capacity and associated cost will be shared
equally between Simfer, which will develop, own and operate a 60 million tonne
per year mine in blocks 3 and 4 of the Simandou Project, and WCS, which is
developing blocks 1 and 2.

Under the co-development arrangement, Simfer will construct the approximately 70
kilometre Simfer spur rail line and a 60 million tonne per year transhipment
vessel (TSV) port, while WCS will construct the dual track approximately 536
kilometre main rail line, the approximately 16 kilometre WCS spur rail line and
a 60 million tonne per year barge port.

Once complete, all co-developed infrastructure and rolling stock will be
transferred to and operated by the Compagnie du Transguinen (CTG) joint venture,
in which Simfer and WCS each hold a 42.5% equity stake and the Guinean State a
15% equity stake.

First production from the Simfer mine is expected in 2025, ramping up over 30
months to an annualised capacity of 60 million tonnes per year (27 million
tonnes Rio Tinto share). The mine will initially deliver a single fines product
before transitioning to a dual fines product of blast furnace and direct
reduction ready ore.

Simfer's capital funding requirement for the Simandou project as a whole is
estimated to be approximately $11.6 billion, of which Rio Tinto's share is
approximately $6.2 billion.



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