Simfer – a joint venture comprising the government of Guinea-Conakry and mining companies Rio Tinto and Chalco Iron Ore Holdings – signed an investment agreement with project developer Winning Consortium Simandou (WCS). The agreement will see Simfer assume a 34% stake in WCS’s rail and port subsidiaries, which are responsible for the development of infrastructure related to the Simandou Iron Ore Project in Guinea-Conakry.
The agreement also outlines a $100 million interim loan by Rio Tinto, aimed at accelerating the construction of infrastructure. Infrastructure will serve both the Simandou North and Simandou South iron ore mines in southeastern Guinea, which are managed by WCS and Simfer, respectively.
Sun Xiushun, Chairman of WCS, stated that “The signing of these investment agreements represents a significant milestone, paving the way for the successful delivery of the project. With plans to create 50,000 jobs at its peak, WCS will offer employment opportunities to tens of thousands of Guineans and promote local enterprise development…”
According to the development arrangement, WCS will build a 536 km main dual-track railway, a 16 km secondary railway and a 60 million tons per year barge port. Meanwhile, SimFer will construct a 70 km secondary railway and a 60 million tons per year transshipment port. Once complete, the companies will transfer the project to Compagnie du TransGuinéen – a joint venture comprising the government of Guinea-Conakry, WCS and SimFer – which will own and operate the rail and port infrastructure.
Bold Baatar, Rio Tinto’s Executive Committee Member for Guinea, added, “We are advancing crucial work across our sites and remain dedicated to collaborating with all our partners to unlock Simandou’s immense potential for the benefit of Guinea’s people today and for future generations.”
