Agreements reached on trans-Guinean infrastructure in milestone for Simandou iron ore project
August 11 2023 - 2:25AM
Business Wire
Rio Tinto and the Simfer1 joint venture (Simfer) reached an
important milestone today by concluding key agreements with the
Republic of Guinea and Winning Consortium Simandou2 (WCS) on the
trans-Guinean infrastructure for the world class Simandou iron ore
project.
The Co-Development Convention with the Republic of Guinea and
associated agreements adjusting Simfer and WCS’s existing mine
conventions create the legal framework for the co-development of
more than 600 kilometres of new multi-use rail together with port
facilities, that will be used to export iron ore from the Simandou
mining concessions in the southeast of the country.
Rio Tinto Executive Committee lead for Guinea and Copper Chief
Executive Bold Baatar said “With these agreements we have reached
an important milestone towards full sanction of the Simandou
project, bringing together the complementary strengths and
expertise of Rio Tinto and our partners, the Government of Guinea
and Winning Consortium Simandou, for the infrastructure that will
unlock this world class resource. Simandou, the world’s largest
known undeveloped supply of high-grade, low-impurity iron ore, will
strengthen Rio Tinto’s portfolio by complementing our existing
Pilbara and Iron Ore Company of Canada products.”
The infrastructure capacity and associated cost will be shared
equally between Simfer, which is developing blocks 3 and 4 of the
Simandou project, and WCS, which is developing blocks 1 and 2.
China Baowu Steel Group has also previously entered into a term
sheet agreement with WCS that may see it partner in the WCS scope
for blocks 1 and 2 of the Simandou mining concession and the
infrastructure joint venture.
The Co-Development Convention requires ratification by the
Guinean State. It is also subject to a number of conditions,
including the Guinean State’s approval of the final feasibility
study for the project. Negotiations continue between the partners
to finalise the investment agreements and related shareholders’
agreements which underpin the co-development. A further
announcement will be made when appropriate concerning these
agreements.
Critical path works continue to be progressed by the partners to
ensure progress is maximised during the 2023-24 dry season.
____________________ 1 The Simfer joint venture comprises Simfer
S.A., the holder of Simandou South Blocks 3 & 4, which is owned
by the Government of Guinea (15%) and Simfer Jersey Limited (85%).
In turn, Simfer Jersey Limited is a joint venture between the Rio
Tinto Group (53%) and Chalco Iron Ore Holdings (47%) – a
Chinalco-led joint venture of leading Chinese SOEs (Chinalco (75%),
Baowu (20%), China Rail Construction Corporation (2.5%) and China
Harbour Engineering Company (2.5%). 2 WCS is a consortium between
Winning International Group (49.99%), Weiqiao Aluminium (part of
the China Hongqiao Group) (49.99%) and United Mining Suppliers
(0.0002%).
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
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