Rio Tinto Group (NYSE:RIO) shares are trading higher today. The company inked a global cooperation agreement with construction equipment manufacturer XCMG Machinery for over $110 million.
The deal includes the supply of essential mining equipment for the Simandou iron ore project in Guinea, a notable untapped high-grade iron ore reserve.
Located in southeastern Guinea, Simandou holds some of the highest-grade iron ore globally, making it crucial in international mineral markets.
The contract covers over 34 units of 230-ton mining trucks, large mining graders with 350 and 550 horsepower, ancillary equipment, and large production loaders and excavators.
Liu Jiansen, Vice President of XCMG Machinery, said, "This marks a new beginning of high-level friendly cooperation between XCMG and Rio Tinto and further demonstrates our leading technology and innovation capabilities in the field of heavy mining equipment."
Aboubacar Koulibaly, Head of Rio Tinto Guinée, stated, "The Simandou project can be a key driver of growth in Guinea – catalyzing a new wave of investment, building the country's entrepreneurial fabric and supporting development across the country."
In July, Rio Tinto reported a 2% Y/Y decrease in iron ore production to 79.5 million tonnes (67.5 million tonnes for Rio Tinto) due to a mid-May train collision. Rio Tinto reiterated its full year outlook for production at Pilbara Iron ore of 323 to 338 million tonnes.
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:SLX) and NEOS ETF Trust Mast Global Battery Recycling & Production ETF (NYSE:EV).
Price Action: RIO shares are up 1.97% at $63.22 at the last check Wednesday.
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