PERTH (miningweekly.com) – Development plans for the rail and port infrastructure to service the Simandou iron-ore project, in Guinea, have progressed, with the incorporation of the La Compagnie du TransGuinéen (TransGuinean Company) joint venture (JV).
Major Rio Tinto is joint venturing with the government of Guinea and Winning Consortium Simandou (WCS) on the TransGuinean Company.
The miner said this week that the JV incorporation is a significant milestone in the implementation of the framework agreement signed among the parties in March 2022 and has been fully registered and established in Guinea and as intended, following the negotiation of definitive tripartite entity arrangements, the company will be the central structure for the co-development of the rail and the port components of the Simandou iron-ore development project.
Following the incorporation of the JV, the parties will now work on the next steps including a shareholding agreement, finalising cost estimates and funding, and securing all necessary approvals and other permits and agreements required to progress the co-development of infrastructures.
In its interim results this week, Rio noted that project activities at Simandou have stopped following an order from the government of Guinea to all parties to stop work in the country.
“We are actively engaging with the government and the WCS towards the resumption of formal negotiations. We remain committed to delivering Simandou in accordance with international environmental, social and governance (ESG) standards, ensuring that the project results in sustainable benefits to Guinea and its people, along with our shareholders and customers,” Rio told shareholders.
The company said that the port and rail company incorporation paved the way to progress the shareholder agreement, and secure necessary financing to construct a strategic corridor with more than 600 km of rail infrastructures extending from south to southwest of the Republic of Guinea, as well as port infrastructure in the Forécariah prefecture in Maritime Guinea.
The infrastructure constitutes the backbone of the Simandou project, which presents a significant opportunity for the economic growth of the Republic of Guinea, in addition to the mining activities it will support.
“We are extremely grateful to our JV partners, the Guinean government and Rio Tinto Simfer for the spirit of cooperation they have shown in achieving this major milestone. The creation of La Compagnie du TransGuinéen is a positive step and builds a solid foundation for the realisation of the Simandou project,” said WCS chairperson Sun Xiushun.
“More importantly, it shows that WCS respects its commitments in a concrete way: to build and develop Guinea, and to significantly contribute to strengthening the country’s economy. WCS welcomes today's signing and thanks all its partners on the ground, particularly our Guinean employees and surrounding communities without whom all this would not have been possible."
Rio copper chief Bold Baatar said that the incorporation of La Compagnie du TransGuinéen with Rio’s partners underscores the importance of the Simandou resource in today's decarbonising world, and its development will complement Rio's strong iron-ore portfolio.
“It is also a very important moment for Guinea and for Guineans, for whom the project's southern infrastructure corridor has the potential to bring significant benefits for regional economic development by leveraging international project and ESG standards. We are most grateful to the government of Guinea and WCS for their collaboration and look forward to making the promise of Simandou a reality.”
Minister Director of the Office of the Presidency of the Republic of Guinea, Djiba Diakité, reassured stakeholders of the government’s intention to develop the Simandou project in the best interest of the Guinean people.
“Guinea's mineral resources belong without exception to all of its daughters and sons and therefore nothing will be done to their detriment. Our country remains open to all responsible and serious mining investment that will help support the sustainable development of our economy and, in turn, is committed to maintaining a stable and calm business climate,” he added.