A $20 billion iron ore, rail, and port development in the Republic of Guinea is set to commence this year after a twenty-seven-year wait marked by legal and political setbacks. Rio Tinto, in collaboration with the Guinean government and at least seven other companies, including Chinalco and Baowu, plans to construct the Simfer iron ore mine. This project, touted as the world's largest and highest-grade new iron ore mine, is expected to contribute around 5 percent to the global seaborne supply. Rio Tinto Group will invest approximately $6.2 billion in developing the project, which includes a 552-kilometer railway and a deepwater port on Guinea’s Atlantic coast.
Plans for the Simandou mine date back to 1997, and despite political turmoil, including coups and presidential elections, Rio Tinto is ready to kickstart the complex project in 2024. The collaboration aims to co-finance the construction of vital infrastructure, fostering economic development in Guinea. Simandou's high-grade iron ore content is positioned as a key resource in the industry's efforts to decarbonize, particularly in China, where over half of global steel production occurs.