A release dated February 11, 2016 from the Guinean government discarded concerns regarding the future of the South Simandou project.

On February 10, Rio Tinto, the major stakeholder in the project, announced a net loss of $866 million and depreciation of the Simandou project as a result of prices of iron falling.

After taking note of the 2015 report the firm sent it, the government confirmed that no change would be made to the calendar defined by partners. “The financial ordeal of one of the partners has no impact on the sure success of the project,” the statement said.

Therefore, the first drafts of the bankable feasibility studies (BFS) will be finalized. In May, partners will proceed to submission of final BFS, launch state facilitating activities, and form an independent consortium for the financing and construction of port and railway infrastructures associated to the project.

The high grade deposit (65.5% Fe) holds an annual capacity of 100 million tons at full production for more than 40 years. Thus, its concretization is an opportunity for Guinea as it plans asides mining, for the transport of the ore via the new trans-Guinean 650Km-long multi-purpose railway. It will transport the ore to the new, also multi-purpose, deep water port.

The government of Guinea said it “fully believed in the successful realization of the project” while Alan Davies, president of the project at Rio Tinto says financial results “will in no way affect the schedule”

Stakeholders of South Simabdou project are the Republic of Guinea (7.5%), Aluminum Corporation of China (“Chinalco”) (41%), and World Bank’s member, International Financial Corporation (4.6%).

Stéphanie C. TOHON