The Simandou project in Guinea has begun operations with a phased increase to 120 million tons per year, according to a press release from Rio Tinto

The company has begun the first shipments of iron ore from the project, with production ramp-up expected to last approximately 30 months. At full capacity, the mine will account for approximately 7% of global seaborne supply, in market terms.

In our view, if Simandhu's production ramp-up goes on schedule, it could put downward pressure on global iron ore prices in the medium term.