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 mine will be the biggest integrated mine-and-infrastructure project ever developed in Africa. It 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 40-million tonnes a year, and Rio's blocks 3 and 4 about 60-million tonnes a year.

The project includes an estimated 650 km railway to transport iron-ore from the mine to the Guinean coast and a new deep-water port, south of Conakry, on the Morebaya river. WCS will construct the project's estimated 536 km shared 
dual-track main line, a 16 km spur connecting its mine to the mainline and the WCS barge port. SimFer will construct the estimated 70 km spur line, connecting its mining concession to the main rail line and the transshipment vessel port.

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.

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 workforce across the SimFer scope of mine, rail and port has reached 21 800, with 81% 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
The first shipment from Simandou has been accelerated to about November 2025.

Ore will be railed from the SimFer mine to the main rail line using the SimFer rail spur and initially shipped through the WCS port while construction of the SimFer port is finalised. 

Rio Tinto expects 500 000 t to one-million tonnes of shipments (SimFer scope from blocks 3 and 4) for 2025.

SimFer’s project partners have confirmed that construction on nonmanaged infrastructure is progressing well. Highlights include track laying on the mainline rail, which is now complete, to allow for first shipped ore from both Simandou mines through the rail system and WCS port in about November 2025. 

SimFer’s mine project is on track – bulk earthworks are progressing and permanent process facilities construction has started. First ore is expected through the permanent crushing facilities in the second half of 2026, on schedule and aligned with plan. Ore continues to be crushed and stockpiled using the temporary crushers. 
 
The JV’s rail spur is progressing well, with tunnel excavation breakthrough achieved in June and track laying continuing ahead of plan. The spur connects the multiuse TransGuinean railway line from the company’s mine operations to the port facilities. Bulk earthworks and final bridge girders have been completed. 

The SimFer port continues to advance ahead of plan; fabrication of the transshipment vessels has started at the shipyard, in China.

The JV also announced the completion of excavation works on the tunnel located on the rail spur linking Simandou Block 3 and 4, in Beyla, to the main TransGuinean line, in Kérouané, in June 2025. Breakthrough of the 900 m tunnel creates direct access between the SimFer mine and Morebaya port by the TransGuinean railway.

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.