The Government of Guinea and its partners, Rio Tinto, Chinalco and the IFC, signed the Investment Framework for blocks 3 and 4 of Simandou, the Project, which will be the largest combined iron ore and infrastructure project ever developed in Africa, providing Guinea with the opportunity to reap the benefits of its rich mineral wealth and transform its wider economy.

Key terms of the Investment Framework

1. The Republic of Guinea becomes an active shareholder of the Simandou South mine

2. The Republic of Guinea now has 7.5% ownership of Simfer S.A., the mine owner.

3. The Republic of Guinea will have the option to increase this share in Simfer SA to 35% over 20 years: an additional 7.5% for free and 20% on a contributing basis (of the 20% - 10% purchased at historical mining cost, that is, the proportionate percentage of Simfer SA's costs in undertaking the mining activities, and 10% purchased at market value).

4. As a shareholder of Simfer SA, the Republic of Guinea will be able to receive dividends and contribute to the company's commercial strategy during board meetings.

The signing marks a significant milestone and provides the legal and commercial foundation for the project. It also allows the project to move towards realizing the opportunities it presents for Guinea and all the shareholders.

Within the coming days, the Government of Guinea will submit the IF for the consideration of the Guinean National Assembly in order to seek its ratification. Once ratified the project partners will finalize, within approximately one year from ratification, the Bankable Feasibility Study which will confirm all the project parameters including cost and timeline.

In parallel, the parties, under the leadership of Rio Tinto, are working together to assemble a consortium of investors who will finance, build and own the multi user 650km railway and deep water port infrastructure within the agreed timeframe and along procedures laid down by the Bankable Feasibility Study and involving all parties.

Mr Sam Walsh Rio Tinto Chief Executive said "Today is an important milestone in the development of this world-class iron ore resource for the benefit of all shareholders and the people of Guinea. I would like to welcome the Government of Guinea as a shareholder and thank the President for his continued commitment to the Project."

Mr SUN Zhaoxue General Manager of Chinalco said: "China and Guinea maintain traditional friendly relations, the two countries are highly economically complementary, Guinea has rich iron ore resources while China is the world's largest iron ore consumer. The signing of Simandou Investment Framework is of great importance, and Chinalco is willing to work with all the partners, to implement respective responsibilities and obligations to achieve earliest first commercial production and full capacity production of the project, which will benefit the State of Guinea and Guinean people."

Mr Jin-Yong Cai IFC Executive Vice President and CEO said "This Project is a priority for IFC, given its potential to bring jobs, infrastructure and revenues to Guinea. Projects of this scale require strong partnerships. This agreement is a testament to the strong collaboration of the Project partners, including the Government of Guinea, in developing a framework that will bring long-term positive benefits to the country."

The Project is a world-class iron ore mining development located in the south-east of Guinea. The Project partners include the Republic of Guinea (7.5%), Rio Tinto (46.57%), Aluminium Corporation of China (41.3%) and the International Finance Corporation (4.625%), a member of the World Bank Group. The Project will be the largest combined iron ore mine and infrastructure project ever developed in Africa, with the potential to transform the Guinean economy and transport infrastructure.

The project comprises three principal components

1. A high-grade iron ore mine (blocks 3 and 4 of Simandou) of 100 million tons per year at full production

2. A new 650km trans-Guinean multi-user railway to transport iron ore to the Guinean coast

3. A new deep-water multi-user port in the Forécariah prefecture