Rio Tinto announced on Tuesday that its massive African iron ore project in Guinea, developed in collaboration with a Chinese consortium, has received all necessary regulatory approvals from local and Chinese authorities, Reuters reported.
The Simandou project, which has been plagued by legal and political delays, involves the construction of 600 kilometres of rail and port infrastructure.
Rio Tinto owns a 53% stake in the Simfer joint venture, while the remaining stake is held by Chalco Iron Holdings, which is mainly owned by Aluminium Corporation of China.
Simandou is set to become the world’s largest new iron ore mine, the main raw material used in steelmaking.
The mega project aims to produce 120 million metric tons annually by the end of 2025.
Rio Tinto has committed $800 million to development in 2023, and plans to invest about $2 billion annually in 2024 and 2025.
The project promises significant economic benefits for Guinea, and will meet the growing global demand for iron ore.
Guinea, a country of 13 million people and very poor, is rich in bauxite, gold and diamonds.
Additional information about Simandou Mine
- The Simandou project includes two iron ore mines, the development of a railway network spanning hundreds of kilometres, and a deep-water port near the capital, Conakry.
- Rio Tinto first obtained an exploration permit for the Simandou Mountains mine in the southeast of the country in 1997.
- The exploitation of iron ore reserves has been hampered for years by disputes over mining rights and suspicions of corruption, as well as the scale of the investments to be made in a landlocked region and a country lacking infrastructure.
- The project site contains the largest untapped deposit in the world with reserves exceeding two billion tons.
- Rio Tinto, which is expected to invest $6.2 billion, will build a mine called Simfer in partnership with a consortium led by Chinalco, the world’s leading aluminium producer.
- A second mine, called the Weneng Consortium Simandou, is set to be built by another Chinese group, world-leading steelmaker Baowu, in partnership with Singapore-based Weneng Group.
