One of the top Australian blue chip stocks, Rio Tinto (RIO) is a diversified international miner that processes mineral resources and is a major mover on the ASX.
RIO and Chinalco have signed a memorandum of understanding to form an iron ore joint venture in Guinea.
Chinalco will acquire a 47% interest in the Simandou Project for US$1.35 billion.
Presently, Rio owns 95% of the project with the remaining 5% owned by the World Bank.
The Australian share price for RIO has bottomed since the beginning of 2009 and continues to uptrend. However, the share price showed some resistance around the $77.50 level in the last two weeks.