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Iron: Guinea seals last deals for $15 billion investment in its Simandou project

Thursday, 11 April 2024 19:12
Iron: Guinea seals last deals for $15 billion investment in its Simandou project

(Ecofin Agency) - In 2022, Guinea signed several investment agreements to develop port and railway infrastructure using iron from the Simandou deposit. Through the deals, valued at $15 billion, the country sought to commence production at Simandou by the end of 2025.

The Guinean government has sealed the final deals for the exploitation of the Simandou iron ore deposit and the development of associated infrastructure. The authorities announced the news on April 8, 2024. 

Valued at $15 billion, the planned investment for this project includes a 600-km railway and a port for ore export. 

"Simandou is no longer a dream but a reality [...]. There is no doubt today that the project will be delivered according to schedule by the end of 2025," assured Djiba Diakité, Chief of Staff of the Presidency appointed to lead the Simandou project monitoring committee.

According to a statement released on the Guinean Presidency's social media platforms, the agreements were signed on April 2, after obtaining various approvals. These include approvals from Chinese authorities and ratification by the Transition Parliament in Guinea.

The four blocks of the Simandou deposit are equally shared between two joint ventures led respectively by Rio Tinto and Winning Consortium Simandou. These joint ventures also each hold 42.5% of the Transguinean Company, intended to operate the railway and port infrastructure, and controlled by 15% by the Guinean government. Various partners, including the Chinese groups Baowu and Chinalco, have been mobilizing funds for months to complete the work.

Simandou is considered one of the world's largest iron ore deposits, hosting billions of tonnes of high-grade mineral resources. The project is expected to significantly increase mining’s contribution to Guinea’s economy. One of Africa’s top mining countries, Guinea is also the world's second-largest producer of bauxite and a major gold producer in West Africa.



Public Management

ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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