Name of the Project
Simandou iron-ore project.

Location
Guinea.

Project Owner/s
Simandou’s mining concession is divided into four blocks.

The project is a partnership between Rio Tinto, Chalco Iron Ore Holdings (CIOH), and a Chinalco-led consortium, Winning Consortium Simandou (WCS), Baowu and the Guinea government.

SimFer Jersey Limited is a joint venture (JV) between the Rio Tinto Group (53%) and CIOH (47%). CIOH is a Chinalco-led JV of leading Chinese State-owned enterprises: Chinalco (75%), Baowu (20%), China Rail Construction Corporation (2.5%) and China Harbour Engineering Company (2.5%).

SimFer is the holder of the mining concession covering Simandou blocks 3 and 4, and is owned by the Guinean State (15%) and SimFer Jersey Limited (85%). SimFer Infraco Guinée will deliver SimFer’s scope of the co-developed rail and port infrastructure, and is a wholly owned subsidiary of SimFer Jersey Limited, but will be co-owned by the Guinean State (15%) after closing of the co-development arrangements.
 
WCS is a consortium of Singaporean company Winning International Group (50%), Weiqiao Aluminium (50%, part of the China Hongqiao Group) and United Mining Supply Group (nominal shareholding). WCS is the holder of Simandou North blocks 1 and 2 (with the government of Guinea holding a 15% interest in the mining vehicle and WCS holding 85%) and associated infrastructure. Baowu Resources has entered into an agreement to acquire a 49% share of WCS mine and infrastructure projects through a Baowu-led consortium, subject to conditions, including regulatory approvals. In the case of the mine, Baowu has an option to increase its shareholding  to 51% during operations.

Project Description
The Simandou project comprises three core elements – a mine, railway and port, as well as associated infrastructure.

The SimFer JV’s mine concession holds an estimated 2.8-billion-tonne mineral resource, of which 1.5-billion tonnes were converted to ore reserves that support a mine life of 26 years, with an average grade of 65.3%.

There will be an openpit iron-ore operation in the Simandou range, in south-eastern Guinea, with an expected peak production of between 95-million and 100-million tonnes a year.

WCS’s blocks 1 and 2 are expected to produce 60-million tonnes a year, and Rio's blocks 3 and 4 about 40-million tonnes a year.

The project includes an estimated 670 km railway to transport the iron-ore from the mine to the Guinean coast and a new deep-water port south of Conakry, on the Morebaya river.

Associated developments to provide utilities and supporting infrastructure for the project include construction facilities, and access to materials, power generation, water, access roads and accommodation.

New infrastructure will become State property upon completion.

Construction of the project will be undertaken in two stages.

During the first stage, the southern Ouelaba mine site will be developed, which will include the construction of the railway and port to a capacity of about 60-million tonnes a year.

The second stage will result in the northern Pic de Fon mine site being brought on line and the capacity of rail and port facilities being expanded, increasing production to between 95-million and 100-million tonnes a year.

The mine will be the biggest integrated mine-and-infrastructure project ever developed in Africa.

Potential Job Creation
It is estimated that the project will create 10 000 direct jobs and more than 100 000 induced jobs, as well as employ more than 3 500 local subcontractors.

The current total workforce across the project is 10 800, with 85% national Guinean participation.

Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
SimFer's capital funding requirement for the Simandou project is estimated at $11.6-billion, of which Rio Tinto's share is $6.2-billion.

Planned Start/End Date
First production from the SimFer mine is expected in 2025.

The Simandou project will be completed and put into operation in 2026.

Latest Developments
NYSE-listed Wabtec Corporation has been awarded a $248-million order for Evolution Series ES43ACmi locomotives and services from WCS to support the latter's rail operations at the project.

The agreement follows a locomotive order a few months earlier from SimFer to serve its operations at Simandou. 

The combined orders for the project, valued at more than $500-million, represent one of Wabtec’s biggest international locomotive agreements in the past five years.

The ES43ACmi is a dual-cab locomotive with a 4 500 hp Evolution Series engine. The locomotive provides exceptional fuel efficiency, and proven performance in harsh, high-temperature environments such as eastern Guinea. 

Wabtec will start delivering locomotives for the project this year.

WCS CEO Zhang Cheng has said the locomotive order is an important milestone for the Simandou project: “As work continues to build the TransGuinéen railway, we will have the equipment in place that supports the high international standards that we’ve committed to deliver.” 

The 600 km TransGuinéen Railway is under construction to connect the Simandou mine and the Port of Morebaya.

In December 2024, Rio Tinto provided an update on the project, noting that the project is on track to start first production from SimFer in 2025, ramping up over 30 months to an annualised capacity of 60-million tonnes a year.

Key Contracts, Suppliers and Consultants
Fluor (construction contractor); NRW Holdings (earthworks contract); Komatsu and its regional distributor BIA Group (critical heavy mobile equipment, or HME, parts and maintenance services for the Simandou project, including five large production excavators, four production loaders and more than 30 ancillary HME vehicles, including dozers, water trucks and small excavators).

Contact Details for Project Information
Rio Tinto, tel +44 20 7781 2000 or email media.enquiries@riotinto.com.
SimFer media enquiries, email Abdourahama.Diallo@riotinto.com.
Chalco, tel +86 10 8229 8103.
WCS,  tel +224 613 55 55 55 or email info@winningafrica.net.