Guinea, Partners Get $15 Billion Funds for Top Iron-Ore Deposit
The government of Guinea and shareholders involved in the Simandou iron ore project, the largest untapped reserve of its kind globally, have signed a $15 billion financing agreement.
Decades of Delay
For years, the Simandou project has faced setbacks due to legal disputes, infrastructure complexities, and costs. In July 2022, Guinea’s transitional government banned the mine’s commissioning, seeking to force shareholders to agree on joint venture terms. In March 2023, an agreement was finally reached, paving the way for work to begin.
$15 Billion Investment
The financing will support the development of railway and port infrastructure by Compagnie du Trans-Guinéen, a joint venture involving the Guinean government, Rio Tinto Group, Chinese investors, and the Simandou Winning Consortium.
Global Impact
Upon completion, the Simandou project will become the world’s largest new iron ore mine with the highest iron ore content. It is projected to add around 5% to the global marine iron ore reserves, significantly impacting the global market.
Strategic Importance for Guinea
Djiba Diakite, chairman of the strategic committee, emphasized the project’s importance for Guinea, stating that it is no longer a dream but a reality that will be delivered on schedule by December 2025.
Project Timeline
1990s: Exploration and discovery of Simandou’s vast iron ore reserves.
2006-2014: Concessions awarded and development agreements signed.
2015: Legal challenges and delays emerge.
2020: Revised development plan announced.
2022: Transitional government bans commissioning.
2023: Shareholders agree on joint venture terms, work begins.
2025 (projected): Project completion and commissioning.
Mehek