AFP reported that Global mining giant Rio Tinto is set to finalise a USD 20 billion deal to develop the world's biggest untapped iron ore deposit in Guinea later this month following years of delays.

Mr Sam Walsh CEO of Rio Tinto said that “The Simandou iron ore project, which could create Africa's biggest ever infrastructure venture will boost Guinea's annual revenue by USD 1.2 billion through income tax and royalty payments and pump billions more into the nation's economy.”

Mr Walsh said that "Later this month, we expect to sign the investment framework that formalises our partnership with the government of Guinea, Chalco and the IFC. This has taken some time to bring to fruition and I think this signing will inject the project with renewed momentum.”

He said that the "Remarkable project" would see billions of dollars invested in developing infrastructure in one of Africa's poorest nations, which is still recovering from decades of military dictatorships and misrule. The deal will formalise the partnership for Simandou with Guinea's government, China's state run aluminium group Chalco and the International Finance Corporation, a division of the World Bank.”

Mr Walsh said that "When fully operational, the annual economic contribution of Simandou to the Guinean economy is estimated to be USD 7.6 billion that's 22 times the USD 340 million in international aid contributions to Guinea in 2012. It would be fair to say that this represents a new paradigm for Guinea."

The estimated USD 20 billion project will include a railway to carry iron ore from the Simandou mountain range to a deep water port 650 kilometres (400 miles) away. The JV includes the development of the port, the establishment of fibre optic and wireless communications, and more than 1,000 kilometres of new and upgraded roads.

Rio was awarded control of all four tenements at Simandou which it said held 2.25 billion tonnes of iron ore resources in 2006, but was ordered by the then military dictatorship to relinquish two northern concessions in 2008.

These concessions were given to BSG Resources, a firm controlled by Israeli billionaire Beny Steinmetz which in turn sold half its rights to Brazilian mining giant Vale.

The permits were declared void by the Guinea government last month, although the nation's President Alpha Conde said the withdrawal of concessions were part of a wider clampdown on mining rights and not case specific despite claims of corruption against BSGR.

In April, Rio Tinto launched a complaint in a US district court against the awarding of the northern Simandou mining concessions to the VBG consortium, which was formed in 2010 by Vale and BSGR, appealing for damages to be awarded to the miner for the loss of the permits.