Rio Tinto to kick off US $20bn mining project in Guinea project
Rio Tinto is set to launch a mining project in the Simandou Mountains of south-eastern Guinea. The project worth US $20billion is touted as one of the world’s most significant mining ventures.
The project has faced a delay of nearly 27 years since securing an exploration license in 1997. The firm attributed as legal disputes, corruption charges, and operational setbacks as cause of the project delay. Upon the kick off, the project will encompass iron ore extraction, rail, and port development.
Partnerships
Recognizing the scale and cost of the project, Rio Tinto has formed a partnership with the Guinean Government and at least seven other companies. The partnership includes five companies from China, emphasizing the collaborative approach to development.
Two mines are planned as part of the project. They include; the Simfer project, an iron ore mine that will be built by Rio Tinto in partnership with a consortium led by Chinalco and the WCS project, another iron ore mine, that will be built by Baowu in partnership with a consortium led by Winning International Group.
Infrastructure plans include a 552km railway and a deep-water port. Rio Tinto and the Chinalco consortium are funding a 70km rail spur to connect to the main line. The first shipment of ore is expected in 2025. The project aims to reach full production of 60 million tonnes per year by 2028, contributing to approximately 5% of the global seaborne iron ore market.
