The National Transition Council of Guinea has endorsed a partnership between Rio Tinto Plc, the China-backed Winning Consortium Simandou, and the government to exploit the world’s largest untapped iron ore reserve according to reports from Bloomberg.
The council which is similar to a parliamentary body in Guinea, confirmed its approval for the project, which entails the construction of a mine, rail line, and port in Simandou by December 2025, as stated by Mory Dounoh, a spokesperson for the Council.
Initial ore production is slated for 2026, with plans to establish a steel factory and pellet plant in the 2030s.
Despite Simandou’s abundant iron ore resources, development has long been hindered by disputes over ownership, infrastructure challenges, and political shifts in Guinea.
The deposit comprises four blocks owned separately by Winning Consortium, Rio, and Aluminum Corp. of China (Chinalco).
Rio and Winning are bound by financial penalties if they fail to meet the construction deadlines outlined in the joint venture agreement, according to Dounoh.
Backstory
Nairametrics earlier reported plans to develop the world’s largest Iron-ore mining site in the Simandou mountains in Guinea to begin in 2025.
The Simandou mountain in the Republic of Guinea hosts arguably the world’s largest untapped iron ore field, boasting one of the purest deposits of this vital steel-making raw material.
What you should know
In December 2023, Rio Tinto Group announced a hefty investment of approximately $6.2 billion in a series of projects aimed at starting the development of high-quality iron ores. The Group’s total investment plan amounts to around $30 billion by 2025, coinciding with analysts’ projections for the commencement of exports from the Simandou mine.
This project is one of Africa’s most significant infrastructure undertakings, featuring an expansive 600km rail line and a deep-water port along the Atlantic coast near the Forécariah prefecture in Guinea.
