Guinea takes back Rio iron ore concession

SYDNEY: Anglo-Australian mining giant Rio Tinto said on Sunday a concession, which potentially could open a massive new iron ore field in west Africa, appeared to have been rescinded. In a statement issued on Friday, Rio Tinto said it received correspondence from Guinea president Lansana Conte ���purporting to rescind the Simandou Mining Concession���. A company spokeswoman said the situation had not changed since then.

Located in the west African country of Guinea, Simandou is said by analysts to have potential to become one of the world���s major iron ore resources. Rio Tinto said it believed it had conformed with Guinean law and would be considering the situation.

���In conjunction with its partner in the project, International Finance Corporation, Rio Tinto is currently studying the issues raised in the correspondence,��� the company statement said.

���Rio Tinto remains confident that its arrangements are in all respects in conformity with Guinean laws and that it has complied with its obligations. Rio Tinto negotiated and executed the Simandou mining concession in full transparency with the Guinean government and is currently in discussion with relevant ministers with a view to resolving any issues.���