Video: ‘Big bang’ in commodity demand set to lift miners, Prins says
Global geopolitical and energy transformations are driving an increased demand for tangible holdings, notably commodities, which are critical for the energy transition.
Guinea’s giant Simandou iron ore project, which is expected to start exports in two years’ time, is set to contribute to the world’s decarbonization efforts, according to Rio Tinto (ASX: RIO).
“With an iron content of nearly 65% and few impurities, Simandou project will make Guinea a key player,” Lawrence Dechambenoit, head of external affairs at Rio Tinto, said in a speech in the capital, Conakry.
“Simandou iron can be refined using less energy-intensive technologies that emit less carbon dioxide during the transformation into steel,” he said at an event to mark the second anniversary of Compagnie du TransGuinéen, a joint-venture set up by the Guinean government and its industrial partners to develop the world’s largest iron ore reserve.
The special purpose vehicle is owned 42.5% each by Rio Tinto and Winning Consortium Simandou and 15% by the Guinean state.
The project entails the exploitation of 8 billion tons in iron ore deposits, with an estimated annual output of 160 million tons, said Djiba Diakite, chairman of the Simandou strategic committee.
The project plans as much as $15 billion investment in the mines, a port and 650-kilometer railway, of which 100 kilometers has been built so far, Diakite said.
Simandou is divided into four blocks, with blocks 1 and 2 controlled by Winning Consortium Simandou, backed by Chinese companies including Baowu Group, while Rio and Aluminum Corp. of China, known as Chinalco, own blocks 3 and 4.
(By Ougna Camara)
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