Guinea expects Simandou to reach maximum production in second year of operation

Guinea expects the Simandou iron ore project, which is due to start in December this year, to reach its maximum production in the second year of operation. This was announced in a conversation with Bloomberg TV by the country’s Minister of Mines and Geology, Buna Sylla.

The government predicts that two mines at the world’s largest iron ore deposit will produce 30 million tons each in the first year, and next year production will increase to 60 million tons at each site.

The Simandou deposit is divided into four blocks, two of which are being developed by a consortium involving Singapore-based Winning International Group, China’s Weiqiao Aluminum (part of China Hongqiao Group) and United Mining Suppliers. In June 2024, following the transfer of rights to a stake in the Winning Consortium Simandou (WCS), Baosteel became the main shareholder in the project. Rio Tinto and Aluminum Corp. of China, known as Chinalco, own blocks 3 and 4.

The Simandou deposit has reserves of 4.41 billion tons of iron ore in four areas.

As GMK Center reported earlier, the Chinese steel company Baosteel expects to complete the construction of infrastructure and produce the first iron ore at the Simandou deposit in Guinea by the end of 2025. The project has an annual production capacity of 120 million tons. It will become the world’s largest deposit of high-quality iron ore, which is a key raw material for the green transition in the global steel production chain.