Rio to sell Simandou stake to Chinalco

Diversified major Rio Tinto has signed a nonbinding agreement to sell its stake in the massive Simandou iron-ore project, in Guinea, to Chinese company Chinalco. Under the terms of the deal, Rio Tinto will receive payment of $1.1-billion to $1.3-billion, based on the timing of the development of the project, which has an ore reserve of over two-billion tonnes and a mine life in excess of 40 years.