Rio Tinto moves forward with $9.2b Simandou investment

All conditions have now been satisfied for Rio Tinto’s (ASX: RIO) investment to develop the Simandou high-grade iron ore deposit in Guinea.

This investment will be the largest greenfield integrated mine and infrastructure investment in Africa. More than 600km of new co-developed rail with port facilities will allow the export of up to 120mtpa of mined iron ore by Simfer and WCS from their respective Simandou mining concessions.

Rio Tinto Guinea and copper executive committee lead Bold Baatar says they are thankful for the Government of Guinea, Chinalco, Baowu and WCS for their partnership in reaching this milestone towards developing the project.

“Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto’s portfolio for the decarbonisation of the steel industry, along with trans-Guinean rail and port infrastructure that can make a significant contribution to the country’s economic development,” he said.

The co-developed infrastructure capacity and associated cost will be shared equally between Simfer, which will develop, own and operate a mine in blocks 3 and 4 of the Simandou Project with WCS developing blocks 1 and 2.

First production from the Simfer mine is expected in 2025, ramping up over 30 months to an annualised capacity of 60mtpa (27mt Rio Tinto share).