Guinea inks deal with Rio Tinto, developers to resume Simandou project – Reuters

The Guinea government allowed Rio Tinto Group and other developers to resume activities at the Simandou iron ore project after reaching a framework agreement to resolve infrastructure-related issues, Reuters reported March 27.

Under the agreement, Rio Tinto, Aluminum Corp. of China, or Chinalco, and the consortium of Societe Miniere de Boké and Winning Shipping (S) Pte. Ltd. must complete infrastructure projects for the operation by December 2024, with commercial production to begin by March 31, 2025, Reuters said, citing a statement by the country's Mines Minister Moussa Magassouba on state television.

According to the report, the deal primarily focused on a 670-kilometer railway from the Simandou site to a new deepwater port, which will cost about $15 billion. The government will take ownership of the new infrastructure upon completion, Reuters said.

Previously, the governing military junta in Guinea ordered a halt to mining activities at the Simandou iron ore deposit as it sought clarity on how the country's interests will be preserved.

The Simandou project has been stalled for years as the company faced investigations into $10.5 million in illegal payments that former executives made related to the project.

Rio Tinto owns 45.05% of Simandou Blocks 3 and 4, while Chinalco holds a 39.95% stake. The Guinea government holds the remaining 15% stake. The consortium of Societe Miniere de Boké and Winning controls Simandou Blocks 1 and 2.