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 last month that the JV incorporation is a significant milestone in the implementation of the framework agreement signed by 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 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 the necessary approvals and other permits and agreements required to progress the co-development of infrastructure.
In its interim results last month, 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 the necessary financing to construct a strategic corridor with more than 600 km of rail infrastructure extending from the south to the south-west 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.”
Riocopper 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.