Guinean authorities said on Monday that the government and a joint venture shareholder had agreed terms for the exploitation of the Simandou iron ore deposit, paving the way for the resumption of mining this month, Reuters reported. Simandou is one of the largest iron ore mines in the world.
Guinea's interim government ordered a halt to work last July in an attempt to force the shareholders - Rio Tinto, Chinalco, China Baowu Iron and Steel and Simandou Win Union - to agree to the terms of the joint venture.
At the time, Guinean authorities said they needed to clarify how their country's interests would be safeguarded as the companies mined Simandou's more than 4bn tonnes of iron ore.
The signing of the shareholders' agreement for the La Compagnie du TransGuineen (CTG) joint venture on March 8 marked a "key step" in negotiations between the Guinean government and the joint venture partners, authorities said in a statement on March 8.
The joint venture, CTG, guarantees the Guinean government a 15 per cent stake in Simandou and a free, non-dilutive 15 per cent stake in rail and port infrastructure.
The statement also reiterated previous promises to eventually open the railway to passenger services and other users.
"Today is one of the most important days in the development of the Simandou project," said WCS representative Robin Lu after the signing ceremony. The signing ceremony was broadcast on state television late Sunday.
The Simandou project has been haggled over for years, with development repeatedly delayed by legal wrangling and the difficulty and cost of building infrastructure.
Under the CTG agreement, Rio Tinto Group will fund half of the project, which is expected to cost between $15bn and $20bn. The Simandou Winning Alliance (WCS) will cover the other half of the funding.
Yang Gongyang, representative of China Baowu in Guinea, said the CTG was "an important step for the Simandou project".
Djiba Diakite, the president's minister in charge of cabinet affairs, said he believed different views would come together and called on all industry partners to take the necessary steps to ensure a planned resumption of work this month.
