The Republic of Guinea is located in West Africa, its mineral resources make it the wealthiest country in the continent, but its people are the poorest in the region. Guinea has the world’s most significant iron ore resources of 2.76billion tons south of Guniea at the Simandou mine. Rio Tinto Simfer with the government of Guinea and Wining Consortium of Simadou (WCS) has signed an agreement on “La Company Du Trans Guniea” to develop infrastructure in the Simandou iron ore project on 27 July 2022. Project infrastructure development includes 600 kilometers of rail infrastructure from south to south-west and port infrastructure in maritime Guinea.
Partners of the Simandou project are working on cost estimates, funds for the project, shareholding agreements, and approval for the project’s development. The two partners, WCS and Simfer Jersey Ltd will have an equal share of 42.5%, and the government of Guinea will have a free carry equity share of 15%.
Simandou’s development has been delayed for several reasons: lack of infrastructure to export the mineral, political instability, and legal dispute between the government & miners. A Consortium Winning International Group from Singapore, China, supportedby SMB Winning Consortium, United Mining Suppliers International, and Weiqiao Aluminum, signed a contract to develop the infrastructure of port and railway for Block 1 & 2 north part of the site. Responsibility for Blocks 3 & 4 is taken by Rio Tinto, Chinalco, China Harbour Engineering Company, China Baowu Steel Group, and China Rail Construction Corporation.
The Guinea government halted the project construction due to discussion among the military government of Guinea, WCS, and Rio Tinto. The government of Guinea awarded 14 days to the firms for the agreement on the project from 19 June. Two companies have crossed the given date, and again construction was suspended.
The development of the Simandou mine is essential because it will develop the south region of Guinea, increase the well-being of the people, will also increase Rio Tinto’s iron ore supply. China, an iron ore consumer and steel producer has appraised the project because it will ensure a smooth supply of raw materials and help to flourish China’s steel industry.
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