Name of the Project
Simandou iron-ore project.

Location
Guinea.

Project Owner/s
Simfer is a joint venture owned by the government of Guinea, Rio Tinto, the Aluminium Corp of China (Chinalco) and Chinese-backed SMB-Winning Consortium (WCS).

Rio Tinto owns a 45.05% stake in the southern half, blocks 3 and 4, of the Simandou deposit, with Chinalco holding 39.95% and Guinea's government the remaining 15%. WCS was awarded a government tender in November 2019 for Blocks 1 and 2.

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

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.

Simandou 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, 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.

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

The second stage will bring the northern Pic de Fon mine site on line and expand the capacity of rail and port facilities, 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
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
A Rio Tinto engineering study conducted on the project estimates capital expenditure at $18.3-billion.

Planned Start/End Date
The first shipment of ore was initially expected by 2015; however, development of the project has been postponed several times.

Latest Developments
Rio Tinto and WCS have 14 days in which to finalise a joint venture, Guinea interim president  Mamady Doumbouya said during a meeting with the miners on June 20.

Guinea has grown increasingly impatient with the companies that control the giant Simandou deposit, which has not been developed since Rio was first granted an exploration licence for it 25 years ago.

The ruling junta signed an agreement with Rio and WCS in March, under which the firms would collaborate on a 670 km railway and a port to get Simandou's high-grade ore to market.

Doumbouya has said that there has been insufficient progress since then.

The Guinean authorities have previously warned that the companies risked losing their mining licences if they failed to meet a tight construction timeline for the Simandou project

Key Contracts, Suppliers and Consultants
Fluor (construction contractor); and NRW Holdings (earthworks contract).

Contact Details for Project Information
Chinalco, tel +86 10 8229 8103, fax +86 10 8229 8081 or email info@chinalco.com.cn.
Rio Tinto, email media.enquiries@riotinto.com.