Africa. Rio Tinto Invests $6.2 Billion in Simandou Mines in Guinea

Rio Tinto, one of the world’s largest mining groups, is investing an astronomical $6.2 billion in a huge iron ore project in Simandou, Guinea, West Africa. In addition to the development and technical modernization of the mines, the project involves the construction of a railway network and related port infrastructure.

Once it is brought into operation in 2025, Simandou will be the world’s largest iron ore mining and export project and will increase global seaborne supplies of the commodity by around 5%. The Simandou mines will take two years to reach full production capacity, estimated at 60 million tons of iron ore per year.

As the mining giant wrote in a press release, “the project is part of Rio Tinto’s green program, which is increasing the supply of high-quality iron ore year after year to decarbonize the steel industry around the world.” The Simandou mines will absorb the bulk of Rio Tinto’s investment over the next three years. In addition to Rio Tinto’s $6.2 billion, the group’s partners will invest another $5.4 billion. In addition, Rio Tinto will invest “significant amounts” in new copper and lithium production between 2024 and 2026.

Rio Tinto, together with the government of Guinea and Chinese companies Aluminum Corp. of China and Chalco Iron Ore Holdings own two of the four mining blocks in southern Simandou. Rio Tinto owns 53% of the joint venture, called SIMFER, with Chinese companies controlling the rest. Mining rights to two sites in the north of Simandou belong to Singapore’s Winning International Group and the Chinese company China Hongqiao Group, again with the participation of the Guinean authorities.