Australian miner Rio Tinto has stockpiled about two million tonnes of high-grade iron ore at its Simandou project in Guinea in preparation for its first shipment scheduled for mid-November, according to Reuters.
Implications for infrastructure and supply
The Simandou project contains an estimated four billion tonnes of ore with an average iron content of 65 percent and is expected to achieve an annual production of 120 million tonnes, potentially increasing offshore supply by 8-9 percent at full capacity. increase.
Market and regional impact
The start-up of Simandou production is likely to put downward pressure on global iron ore prices, particularly for higher-cost producers. The project is also expected to significantly increase Guinea's GDP by 2030.
Timeline and next steps
Exports are expected to begin with ship loading in November, and construction of port and rail infrastructure is nearing completion. Ownership of Simandou is split between Rio Tinto, Chinese state-owned Chalco and a Singapore-China consortium.
