The long-delayed Simandou iron ore project in Guinea, which is now coming online, is poised to change the balance of power in the global iron ore market.
Backed by key Chinese stakeholders, the $23 billion facility represents the world's largest untapped iron ore deposit, estimated to contain at least 3 billion metric tons of high-grade ore. As operations begin, Simandou is expected to transform Guinea's economy and significantly increase China's control over global commodity pricing, according to a Bloomberg report.
Scale and strategic significance
The operation spans two major mining blocks, jointly developed by Rio Tinto and the Aluminum Corporation of China (Chinalco), on the one hand, and the Winning Consortium Simandou (WCS) - a coalition of Chinese and Singaporean firms on the other.
Rio Tinto, which will need another year to complete the mine and port, plans to increase output to 60 million tonnes a year within 30 months, while WCS has not disclosed its timeline for achieving the same level. Together, the two groups will produce up to 120 million tonnes of iron ore per year, equivalent to about five percent of global production once at full capacity.
The iron content of Simandhu ore exceeds 65% Fe, making it one of the highest-grade resources in the world and highly desirable for low-emission steel production. First deliveries are expected to begin by the end of this year, with ramp-up phases continuing until
