PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has failed in its bid to gain mining rights on the Simandou blocks, in the Republic of Guinea
The miner on Thursday said that it had been notified by the Guinean government that it was not the preferred bidder in the recent tender for mining rights on mineral deposits on Simandou blocks.
Instead, the Guinean government will proceed into detailed negotiations with the preferred bidder.
Fortescue told shareholders that the company remained focused on the successful delivery of its $3.87-billion investment in the Eliwana and Iron Bridge projects, in the Pilbara, and would continue to explore global opportunities aligned with its strategy and expertise.
The $1.27-billion Eliwana mine-and-rail project, would include the construction of a 143-km rail line, a new 30-million tone a year dry processing facility and infrastructure, with first ore targeted for December next year.
Meanwhile, the $2.6-billion Iron Bridge magnetite project is expected to have an annual production 22-million tonnes a year producing a 67% iron content, low impurity concentrate suitable for pellet feed or blending with sinter fines.