Rio Tinto about the Simandou iron ore project

7th December 2023 Rio Tinto about the Simandou iron ore project

Largest untapped iron deposit

Rio Tinto has informed us that the start of production in the Simandou iron ore project (Guinea) will start in 2025. Simandou is the world’s largest untapped high-grade iron ore deposit. According to Rio Tinto’s announcement: “mine concession held an estimated Total Mineral Resource as at 31 December 2022 of 2.8 billion tonnes, of which Rio Tinto is today reporting the conversion of an estimated 1.5 billion tonnes to Ore Reserves that support a mine life of 26 years, with an average grade of 65.3% iron3 and low impurities. Rio Tinto is also reporting Mineral Resources exclusive of Ore Reserves of 1.4 billion tonnes at 66.1% Fe and low impurities.” Moreover, according to the projectile, the new mine output will add ca. 5% of the global iron seaborne supply.

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

Big investments

The project’s initial funding is estimated at $11.6 billion. The $6.5 billion is needed for co-development infrastructure owned and operated by CTG once completed. The infrastructure consists of 70 km rail-spur, port, and rail infrastructure. The Rio Tinto share is expected to be $2.7 billion in mien and TSV’s and 3$3.5 billion in co-developed infrastructure.

First production from the two blocks which are co-owned by Rio Tinto is expected to ramp up over 30 months from 2025. The operational annual capacity will be 60 million and Rio’s Tinto share will be ca. 27 million tonnes per year.

Investment structure

Rio Tinto owns two (Block 3 and Block 4) of four Simandou mining blocks as part of its Simfer joint venture. The Simfer is the agreement between the Rio Tinto Group (53%) and Chalco Iron Ore Holdings Ltd (Chalco Trading Hong Kong Co., Limited). The rest (Block 1 and Block 2) is part of a Singaporean company, Winning International Group (50%), Weiqiao Aluminium (part of the China Hongqiao Group) (50%), and United Mining Supply SA (nominal shareholding).

The Simandou mining project due to the complex ownership structure and prolonged negotiations, as well as Guinea’s political changes, etc., has been a subject of long negotiations.

Next WMC Congress

World Mining Congress

2026

The 27th World Mining Congress will be organized in 2026 in Peru.

Learn more
27th
Next IOC Meeting

IOC / WMC Meeting

2024

The 105th IOC/WMC meeting will be organized on April 14th, 2024 in Santiago de Chile.

Learn more
105th

Our news Others news

23rd April 2025 Novagold and Paulson confirm $1.0 billion deal

Gold fleak. Source: Photo by JUNXUAN BAO on Unsplash

Novagold resources has made a press release informing that with Paulson Advisers LLC have entered into…

16th April 2025 Happy Easter!

Sign on the Scrabble tiles: Happy Easter! Source: Photo by Priscilla Du Preez 🇨🇦 on Unsplash

Dear World Mining Congress International Organizing Committee Members and all Mining Industry Representatives! We are approaching…

16th April 2025 Sulliden acquired a part of promising nicke and zinc Polish deposits

Rocks on hand. Source: Photo by Taylor Wright on Unsplash

Sulliden Mining Capital Inc. has informed that it has acquired a 5.2% interest in a promising…

15th April 2025 First blasting at Kathleen Valley underground lithium operation

Miner ar the corridor excavation place in underground mine. Source: Photo by Munkh-Erdene Eenee on Unsplash

Liontown Resources Limited has made a press release informing about its successful commencement of underground production…

15th April 2025 Copper World with pivotal Letter of Commitment

Arizona's game-stone. Source: Photo by Seval Torun on Unsplash

PRNewswire has announced a pivotal milestone for the Copper World project in Pima County, Arizona! Copper…

9th April 2025 Chile’s Lithium Resources See Significant Boost!

Olaroz Lithium Project. Source: https://arcadiumlithium.com/operations-projects/

New studies of salt flats in Chile’s northern Antofagasta region reveal a 28% increase in total…

4th April 2025 Zinnwald Lithium has strong support for its lithium project!

Lithium battery. Source: Photo by Vardan Papikyan on Unsplash

Zinnwald Lithium Plc announced that the Saxon State Government has reaffirmed its strong support for its…

4th April 2025 BHP considered spinning off its iron ore and coal divisions

Open peat mine aerial view. Source: ivan-bandura Unsplashed

According to Reuters, BHP Group considered spinning off its Australian iron ore and coal divisions as…

2nd April 2025 Critical Metals Corp releases PEA for Tanbreez Project

Greenland's glacial and mountain landscape. Source: Photo by Visit Greenland on Unsplash.

Critical Metals Corp. has made a press release announcing the release of the independent Preliminary Economic…

28th March 2025 Strengthening Europe’s Strategic Raw Material Capacities

European Union flags. Source: Alexandre - lallemand Unsplash.

The European Commission has unveiled its first-ever list of 47 Strategic Projects under the Critical Raw…