Rio Tinto Limited
Sold stake in iron ore mine:Rio Tinto Ltd (RIO) has announced the plans to sell its Simandou iron ore project to China’s Chinalco, the world’s largest iron ore consumer. Simandou, in Africa’s Guinea is estimated to have the world’s largest untapped iron ore reserves with 2 billion tonnes of iron ore worth an estimated US$50 billion. Currently, Rio holds 46.6% stake in Simandou. The group will receive $1.1-1.3 billion in terms of payment. Lately, the group has contacted regulatory authorities with regard to investigations on contractual payments totaling US$10.5 million made to a consultant providing advisory services on Simandou. Rio has cut guidance for Pilbara iron ore shipment for this financial year in the range between 325-330 million tonnes. September quarter produced 83.2 million tonnes and fourth quarter is expected to have 81.1 million tonnes. Meanwhile, Rio informed that it reduced its gross debt by $1.5 billion under cash tender offers announced in September 2016.