The development of one of the largest untapped high-grade iron ore deposits in the world in Guinea, Simandou, has moved a step forward after miners struck a deal to develop key infrastructure at the West African location.
Simandou’s significance lies in its ability to provide major iron ore consumers such as China with an alternative to top supply sources like Australia and Brazil, creating raw material diversification for Chinese and other steel mills while offering coveted higher-quality ore.
But the future Guinea mines, stretched across four blocks on two northern and southern parcels and over 100 kilometers of rough and sensitive terrain, are notoriously difficult to develop, resulting in years of delays and a production stalemate.
But the two consortium owners of the four blocks, Winning Consortium Simandou and Rio Tinto Simfer, and the Guinean government, agreed to co-develop multi-user infrastructure for Simandou, a step forward in progressing mining operations.
“WCS and Rio Tinto Simfer are committed to co-develop the rail and port infrastructures in line with internationally recognised environmental, social and governance standards,” a statement by the consortium owners and the Guinean government said.
“The infrastructure constitutes the backbone of the Simandou project, that presents a significant opportunity for the economic growth of the Republic of Guinea, in addition to the mining activities it will support.”
The two consortiums say they will seek financing to construct more than 600 kilometers of rail infrastructure extending from the south to the southwest of Guinea as well as port infrastructure in the Forecariah prefecture in Maritime Guinea.