Rio wants Guinea mine talks with new leaders

Mining giant Rio Tinto is seeking talks with Guinea's new leader over the future of its $6 billion (£4 billion) iron ore project in the country.

Guinea's new military leader Captain Moussa Dadis Camara has said the new government, which seized power after the death of President Lansana Conte, has cancelled all mining agreements and will renegotiate them.

Rio said today the mining concession for its Simandou iron ore project in the African country remains valid.

A spokesman for Rio Tinto said the company followed the correct process in winning the mining convention and mining concession for Simandou in 2003.

"We believe that they both remain valid and we also believe that we followed due process and have fulfilled all our obligations and commitments," he said.

"A meeting with the new President and his team is a high priority for us."

Rio Tinto has reopened its Conakry office for the Simandou project, in which the miner has so far invested $450 million.

NRW Holdings, an Australian mining contractor working in Guinea for Rio, says it is proceeding with the project despite the ruling military junta's cancellation of all mining agreements.

"For us, it's business as usual," said Kim Hyman, company secretary of Perth-based NRW.