The Guinean government, Rio Tinto, and other partners has commenced infrastructure construction to reopen their Simandou iron ore mine.
The mine, which is situated in south-east Guinea, is thought to contain more than 4 billion tonnes of ore. Making it the greatest know reserve of its sort in the entire globe.
The 15 billion dollar project, which includes a port and railway, came to an end over a year. After operations were halt.
The Guinean govt issued a stop-work order for the project in July 2022 to compel the stockholders to accept joint venture (JV) arrangements.
To build the train and port needed to move high-grade iron ore from the mine to the market. Rio’s Guinea division formed a JV with WCS and the Guinean govt.
WCS is a partnership between the Guinean firm Unit Mining Suppliers International (20 percent). The Singapore-based WIG (45 percent), & the China Hongqiao subsidiary Weiqiao Aluminium.
A contract for the La CTG joint venture was sign by all stakeholders in March 2022. Guaranteeing the govt 15 percent of the Simandou iron ore as well as a 15 percent free & non stake in the railway and port facilities.
The head of the ruling junta Colonel Mamadi Doumbouya stated. “My objective is for the Simandou project to serve as a true accelerator for the economic development of Guinea & enable the nation to become a big player in the world iron ore market.“
Simfer is 85 percent control by Simfer Jersey, a joint venture between Rio Tinto(53 percent) & Chalco Iron Ore Holdings (CIOH) (47 percent), and 15 percent is own by the Guinean govt.
Aluminum Company of China (Chinalco) owns 75 percent of CIOH, while Baowu owns 20 percent. China Harbour Engineering Company and China Rail Construction Corporation each own a 2.5 percent share.