Guinea’s military junta has reportedly announced that the country’s large-scale Simandou iron ore mine and infrastructure project is set to restart in March.
In July last year, the government of Guinea ordered to stop works at the Simandou iron ore project in a bid to force the shareholders to agree on joint venture terms.
The shareholders include Rio Tinto, Aluminium Corporation of China (Chinalco), China Baowu Steel (Baowu), and Winning Consortium Simandou (WCS).
Guinea’s military junta leader Colonel Mamady Doumbouya and other top officials who visited China between January 11 and 22 have met Baowu officials, reported Reuters.
The partners aim for final terms to reach an agreement at least before 28 February, the military junta said in a statement summarising the visit.
The Junta’s communications department said: “The mission was excellent and conclusive as it commits to the huge Simandou project restarting as soon as possible in March 2023, subject to negotiations on the project terms being finalised on February 28 at the latest.”
The Simandou iron ore deposit located in the Simandou mountain range in south-eastern Guinea is believed to be the world’s biggest untapped high-grade iron ore deposit.
In March last year, Guinea’s military junta, Rio Tinto, and a Chinese consortium agreed to resume the activities at the Simandou iron ore deposit.
The agreement is primarily related to a 670km railway from the project site to a new deepwater port, which costs about $15bn, reported Reuters.
In early July last year, the government ordered Rio Tinto and its partner, the Chinese consortium (WCS) to halt the development works at the Simandou iron ore project.
Later that month, the government, Rio Tinto’s subsidiary Rio Tinto Simfer, and the Winning Consortium Simandou (WCS) agreed to resume the works at the Simandou iron ore project.
The Chinese-backed consortium and the government of Guinea have formed a new JV, dubbed La Compagnie du TransGuinéen.
TransGuinéen has agreed to develop rail and port infrastructure for the Simandou iron ore project, as per the environmental, social and governance standards. iron ore
