IN a significant development on Saturday, lawmakers in Guinea granted approval for a collaborative development agreement concerning the vast Simandou iron ore project. The historic deal involves the junta-led government, global mining giant Rio Tinto and Winning Consortium Simandou, according to a spokesperson for the legislative body.
Simandou, poised to become the world’s largest and highest-grade new iron ore mine, has been at the centre of prolonged negotiations, grappling with challenges stemming from its intricate ownership structure, legal disputes causing delays, Guinea’s political unrest, and complexities surrounding construction.
The National Transition Council, functioning as the parliament within Guinea’s interim regime, convened to vote on laws that officially ratified the agreement. Council spokesperson Mory Dounoh addressed journalists after the vote, revealing that the approved deal outlines a timeline for the completion of construction by the end of 2024.
Rio Tinto, through its Simfer joint venture with China’s Chalco Iron Ore Holdings (CIOH) and the Guinean government, possesses ownership of two out of the four Simandou mining blocks. In this joint venture, Rio Tinto maintains a 53 percent stake, while the remaining share is held by CIOH.
Meanwhile, the remaining two mining blocks are being developed by Winning Consortium Simandou (WCS), comprising Winning International Group based in Singapore, Weiqiao Aluminium (a part of the China Hongqiao Group), and United Mining Suppliers.
The approved joint development deal marks a crucial step forward for the Simandou project, bringing hopes for the resolution of various challenges and paving the way for the realisation of what is anticipated to be a groundbreaking iron ore mine. The agreement envisions the project’s completion within the set timeline, signalling positive prospects for Guinea’s mining sector.