Name of the Project
Simandou iron-ore project.

Location
Guinea.

Project Owner/s
Simfer is a joint venture owned by the government of Guinea, Rio Tinto, the Aluminium Corp of China (Chinalco) and Chinese-backed SMB-Winning Consortium (WCS).

Rio Tinto owns a 45.05% stake in the southern half, blocks 3 and 4, of the Simandou deposit, with Chinalco holding 39.95% and Guinea's government the remaining 15%.

SMB-Winning was awarded a government tender in November 2019 for Blocks 1 and 2.

Project Description
The Simandou project comprises three core elements – a mine, a railway and a port, as well as associated infrastructure.

There will be an openpit iron-ore operation in the Simandou range, in south-eastern Guinea, with an expected peak production of between 95-million and 100-million tonnes a year.

Simandou blocks 1 and 2 are expected to produce 60-million tonnes a year and Rio's blocks 3 and 4 about 40-million tonnes a year.

The project includes an estimated 670 km railway to transport the iron-ore from the mine to the Guinean coast and a new deep-water port south of Conakry, on the Morebaya river.

Associated developments to provide utilities and supporting infrastructure for the project include construction facilities, access to materials, power generation, water, access roads and accommodation.

New infrastructure will become State property upon completion.

Construction of the project will be undertaken in two stages.

The first stage will develop the southern Ouelaba mine site, which will include the construction of the railway and port to a capacity of about 60-million tonnes a year.

The second stage will bring the northern Pic de Fon mine site on line and expand the capacity of rail and port facilities, increasing production to between 95-million and 100-million tonnes a year.

The mine will be the biggest integrated mine-and-infrastructure project ever developed in Africa.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
A Rio Tinto engineering study conducted on the project estimates capital expenditure at $18.3-billion.

Planned Start/End Date
The first shipment of ore was initially expected by 2015; however, development of the project has been postponed several times.

Latest Developments
The Guinea government has reached an agreement with Rio Tinto and Chinalco to resume activities at Simandou after resolving infrastructure disputes.

Guinea's transitional authorities said in March that the site's development would be halted, as they sought clarification on how Guinea's interests would be preserved.

Government's move was considered a way of putting pressure on Rio and WCS to find a way of collaborating on the costly infrastructure needed to transport ore from Simandou to the port.

Mines Minister Moussa Magassouba said on State television on March 25 that a framework agreement had been signed between government and the companies involved in the project.

Magassouba said infrastructure projects must be completed by December 2024 and commercial production must start by March 31, 2025 – a timeline that, according to analysts, is ambitious, given the scale of the infrastructure that needs to be built.

The agreement primarily concerned developing a 670 km railway from the Simandou site to a new deep-water port.

"The framework clearly outlines the key principles for all parties to work together on the co-development of infrastructure, and sets out how the project will be built to international environmental, social and governance standards," Rio Tinto's head of copper Bold Baatar has said in a statement.

Key Contracts, Suppliers and Consultants
Fluor (construction contractor); and NRW Holdings (earthworks contract).

Contact Details for Project Information
Chinalco, tel +86 10 8229 8103, fax +86 10 8229 8081 or email info@chinalco.com.cn.
Rio Tinto, email media.enquiries@riotinto.com.