The management of the Australian mining and metallurgical corporation Rio Tinto has approved investments in the amount of $6.2 billion in the project to develop the Simandou iron ore deposit in Guinea. The total cost of the project is estimated at $20 billion. Its complexity lies in the fact that several companies are participating in it at once.
The Simandou deposit is divided into four blocks, two of which belong to the consortium Simfer Jersey Ltd (Rio Tinto, Chalco Iron Ore Holdings, a joint company of Chinalco and Baowu, China Rail Construction Corporation and China Harbour Engineering Company), in which Rio Tinto’s share is 53%. The other two blocks are under the control of another consortium WCS (Winning International Group, Weiqiao Aluminum, United Mining Suppliers International).
Each of the consortiums is building its own enterprise for ore mining. Simfer, as Rio Tinto points out, will have a capacity of about 60 million tons per year and is expected to produce its first output before the end of 2025. However, all developers must jointly build a 552 km railway for the removal of ore and a deep-water seaport. Rio Tinto has decided on its contribution. At the same time, the company has already spent about 500 million and is now investing $5.7 billion in further construction. But the allocation of funds will depend on the actions of its Chinese partners, who must also decide on providing financing.