Tuesday, 31st January 2006 (3342 views)

Rio Tinto has been discussing more details surrounding its recent joint venture with Norilsk Nickel.

The British-Australian mining giant is reportedly ready to invest hundreds of millions of dollars into its joint venture with Norilsk Nickel, the St Petersburg Times reports.

On January 26th the two companies signed a partnership to explore nonferrous and precious metal deposits in greenfield sites in southeastern and eastern Siberia.

Norilsk Nickel is to hold a majority share of 51 per cent, although neither company has officially confirmed how much it will invest in the joint venture or how profits will be split.

"I see this as being very much a long-term relationship with Norilsk," Rio Tinto head Leigh Clifford said last week.

The entry of foreign capital into the Russian metals sector has been politically sensitive, however, there is speculation that the two companies could tender and win contracts for exploration in some of Russia's larger deposits, not just the greenfield exploration.

Rio Tinto mines for gold and also has interests in aluminium, copper, diamonds, energy products, industrial minerals (borates, titanium dioxide, salt and talc) and iron ore.

 

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