GUINEA: The government has signed agreements with Rio Tinto Simfer and Winning Consortium Simandou, both of which are part of the La Compagnie du TransGuinéen consortium, outlining the legal framework for the "co-development of more than 600 km of new multi-use rail together with port facilities" to be used for the export of iron ore from the Simandou mining region in the southeast of the country.
The contracts inked on August 10 mark a new development in the initiative to utilise what Rio Tinto refers to as "the last known, largest, and richest undeveloped high-grade iron ore deposit in the world."
At a point close to Port Morébaya, the proposed railway would travel to Forécariah, Kassa, and Nialinko before coming to an end in the Simandou mining district.
Rio Tinto Simfer, which is building Blocks 3 and 4 of the Simandou project, and Winning Consortium Simandou, which is building Blocks 1 and 2, will split the cost and available infrastructure capacity evenly.
A term sheet agreement between the WCS scope for Blocks 1 and 2 and the infrastructure joint venture and the China Baowu Steel Group was already signed.
Rio Tinto stated that the Guinean State must ratify the Co-Development Convention governing the project. The final feasibility assessment for the project must also be approved by the Guinean State, among other requirements.
The business added that "negotiations between the partners to finalise the investment agreements and related shareholders' agreements that support the co-development" are still ongoing. Critical path projects are still being advanced by the partners to guarantee that development is maximised during the dry season of 2023–2024.
The signing of the agreements, according to the Office of the Guinean Presidency, "created a comprehensive framework for the Simandou project's major infrastructure while underscoring the unshakeable commitment of all parties to its realisation." The promotion of local content, the creation of economic prospects for Guinean enterprises, training, and knowledge transfer throughout the construction period were all given top priority by the agreements.
