SIMANDOU AWARE

Nestled in the forested mountains of Guinea in West Africa lies what is reportedly the world’s biggest untapped high-grade iron ore deposit. One of the continent’s most ambitious combined mining and infrastructure projects, the Simandou project covers a total area of 1,500 square kilometers where ore will be extracted, processed and then transported 650 kilometers along a rail line cutting through the country’s endangered species habitats, agricultural lands and protected areas before finally arriving at a new deepwater port in local fishery areas for export. Coveted by international mining companies for decades, today’s project proponents include two consortiums: Australian mining giant Rio Tinto with Chinese aluminum producer Chinalco (Simfer) and China’s largest aluminum producer, Hongqiao with a Singapore-based entity Winning (Winning Consortium Simandou or WCS). News reports indicate China’s largest steel maker, Baowu, is in talks with both consortia. Construction has started on the rail line and port – estimated to cost USD 13 billion to build – held by the two consortia and the Guinean government, and on the WCS blocks. Rio Tinto is in the process of updating its studies in order to start construction.