Public Management

Guinea: Simandou Set to Commence Production in 2025

Guinea: Simandou Set to Commence Production in 2025
Monday, 04 November 2024 15:12

In 2021, Colonel Mamadi Doumbouya led a coup that brought him to power in Guinea. One of his main goals is the Simandou project, which has been stalled for decades but is set to begin production next year.

The Simandou project could deliver its first iron by the end of 2025. The Chinese steelmaker Baoshan Iron & Steel, a subsidiary of BaoWu, said on Oct. 30 that it expects to load the first cargo of iron ore from the project by the end of the coming year. This suggests that the project might be finalized soon. 

If the forecast materializes, Col. Doumbouya will achieve his goal in less than five years. After taking office in September 2021, the Guinean leader prioritized Simandou. At first, he suspended all activities related to the project but later reached a historic framework agreement at the end of March 2022.

Pressured by Col. Doumbouya, the two main companies involved in Simandou–Rio Tinto Simfer and Winning Consortium Simandou–agreed to combine their resources to speed up the project’s development.  The two firms formed a joint venture with the Guinean government called Compagnie du Transguinéen (CTG) to manage the rail and port infrastructure needed for ore shipment. The framework agreement also includes penalties, including the potential withdrawal of mining permits if the development schedule is not followed.

Col. Doumbouya set up a strategic committee to monitor the Simandou project. The committee ensures that the various commitments related to the project are met. It directly reports developments to the leader. Members of the committee include some of Doumbouya’s closest advisors such as the Secretary General and Director of the Office of the President. 

Simandou could significantly change Guinea's economy beyond just mining. The planned 600-km railway for ore transport will also support agricultural transport and passenger services. The government plans to allocate 20% of CTG revenues and 5% from mining activities to fund higher education for young Guineans through scholarships and regional universities.

Local contractors are already contributing to Simandou's development, with $80 million in subcontracts signed, according to Saifoulaye Baldé, CEO of the Bourse de Sous-traitance et de Partenariats (BSTP). The IMF estimates that starting mining at Simandou in 2025 could boost Guinea's GDP by 26% by 2030 compared to a scenario without the mine.

Simandou can produce over 100 million tonnes of high-grade iron ore annually. Most of its output should be shipped to China, as Chinese companies massively invested in the $15 billion project.

Emiliano Tossou

 

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Unilever CI shares surged 548% in 2025, reaching a peak market value of CFAF 478 billion. Parent Unilever sold 99.78% to SDTM-CI for about CFAF 24.5...
• Zenith Bank to enter Côte d’Ivoire in 2025, eyes Cameroon next.• $228M capital raise supports Francophone Africa expansion strategy.• Côte...
Visa launched Visa Pay app in Kinshasa on Sept 4. App supports FC/USD payments, transfers, and virtual cards. Five partner banks onboard;...
• Benin unveils green finance framework to mobilize funds for climate initiatives• Ten priority sectors include renewable energy, transport, water, and...
Most Read
01

Over the past two decades, mobile money has grown into a cornerstone of African finance. Driven by i...

Africa’s Mobile Money Boom: A New Frontier for Global Payment Giants
02

On August 31, 2025, the ruling coalition in Benin Republic—comprising the Union Progressiste pour le...

Romuald Wadagni: From High-Profile Minister of Finance to Presidential Candidate for 2026
03

• Tanzania to host investor talks on expanding CNG infrastructure• Government aims to boost CNG use,...

Tanzania Looks to Compressed Natural Gas to Ease Dependence on Costly Oil
04

Nigeria eyes $671m data center market by 2030, seeks Chinese investors. Rising mobile da...

Nigeria Courts Chinese Investors for $671 Million Data Center Market
05

• Lucara secures $10M loan for Karowe underground project• UGP faces delays, costs rise to ...

Botswana Diamond Mine Expansion, Now Costing $683 Million, Faces New Review and Delays
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.