2024-02-18 23:05:06
The Simandou project is now launched in Guinea, following almost thirty years of twists and turns. It is estimated at 20 billion dollars, for a production which should ultimately reach 60 million tonnes per year, or 5% of international iron trade. And despite delays linked to negotiations on the financial aspect, the stakeholders still envisage that the work will be completed by the end of the year, for first production in 2025.
The Anglo-Australian mining giant Rio Tinto has held permits on the coveted deposit since 1997. I think the first time I heard regarding Simandou… I was four years old ! » even affirms Karamo Kaba, the governor of the Guinean Central Bank.
But according to him, things have accelerated since 2022 and the takeover of power by General Mamadi Doumbouya. “ We had a state that was pragmatic. It’s true that we had long discussions, we had tough meetings. But we adhered to this idea of co-development, win-win » analyzes the governor.
A 600 km railway line
Simandou is in fact two mines: one developed by Rio Tinto Simfer and the Chinese aluminum heavyweight Chinalco – and the other by the Chinese steel producer Baowu associated with the Sino-Guinean-Singaporean consortium Winning .
But that’s not all: a railway line must also be built as the deposit is located far in the interior of the country, as well as a port. Tony Sun, from the Winning group, is confident in the progress of the work. “ It’s a long, hard job… we also have to build nearly 600 km of railway. It is not finished, but the connecting roads, over these 600 km, have been completed, and we are working at full speed to move the project forward » he elaborates.
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According to the authorities, a little less than half of the infrastructure has already been completed, to ultimately be able to export this ore with an iron content of nearly 65%. An exceptional quality that pushes Rio Tinto to compare it to “caviar”. « The biggest part has been negotiated, at the current stage, there are still some tilings to be done, advances Samuel Gahigi, the director of the mining group for Guinea. The most important thing is that we had the ratification of the co-development agreements by the National Transitional Council. I think the next few weeks will be decisive for closing the remaining agreements. »
Two billion from 2040
The transitional government is not left out and is already calculating the benefits for the country. “ Guinea’s budget is between 3.5 and 4 billion dollars per year. And you have 2 billion which will arrive directly in the State budget from 2040. Dividends, duties, taxes and duties will be important for the Guinean economy », rejoices in particular Moussa Cissé, the Guinean Minister of the Economy.
However, the question of the environmental consequences of the project remains unresolved, while civil society continues to demand publication and updating of impact studies.
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