• Guinea plans to require local refining of iron ore from the Simandou project.

• The $20 bln project involves Chinese firms, Baowu, and Rio Tinto.

• Aim is to create jobs and raise export revenues through value-added products.

At the Africa Down Under conference in Australia last week, Guinea’s government reaffirmed its ambition to expand local processing in the mining sector. After pushing bauxite producers to build refineries, authorities are now looking to apply the same requirement to iron ore from Simandou.

“If Baowu comes to Guinea, they will build a refinery before exporting [the iron],” said Planning Minister Ismaël Nabé in an interview with the Australian Financial Review. He stressed that building a refinery is part of the strategy to maximize the value of the world’s largest untapped iron ore deposit.

Baowu, China’s biggest steelmaker, is among the companies involved in developing Simandou. In addition to helping finance the project, it has signed agreements to supply its Chinese plants with Simandou ore.

Simandou is divided into four blocks. Two are controlled by the mainly Chinese-backed Winning Consortium Simandou, while the other two are run by Rio Tinto of Australia alongside other Chinese partners.

Conakry’s push for local refining raises questions over existing supply agreements, as Simandou is expected to start production by late 2025. The project requires nearly $20 billion in infrastructure, including railways and a port.

For Guinea, the goal is to maximize the project’s economic benefits through local job creation and additional revenue from exporting processed products. However, challenges remain.

A similar ambition announced in 2021 for bauxite has yet to materialize. Several refinery projects aimed at producing alumina have been launched, but Guinean bauxite continues to be exported raw, reaching a record 145 million tons in 2024. Meanwhile, the government revoked the license of Emirates Global Aluminium, accusing the company of failing to honor its commitment to build a refinery.