After nearly three decades of setbacks and scandals, Rio Tinto is expected to launch its $20 billion Simandou iron ore project in Guinea this year, according to Mining.com.
The Simandou iron ore project will be the largest and highest-grade new iron ore mine in the world and will increase global seaborne supply by about 5% when commissioned.
Simandou is a joint venture between Rio Tinto, the Guinean government and at least seven other companies, five of them Chinese.
Rio Tinto was first granted an exploration licence for Simandou in 1997. Since then, Guinea has experienced two coups, four heads of state, and three presidential elections.
In 2024, once Rio's Chinese state-owned partners have received final approval from Beijing, Rio intends to launch the most complex project in its history.
"There is no other project on the market with this size and scale," Bold Baatar, head of Rio's copper business, said in an interview with the Financial Times.
Rio plans to build an iron ore mine at the Simfer project in partnership with a consortium led by Chinalco. The second Mine Win Alliance (WCS) project will be built by Baowu in partnership with a consortium led by Singapore-based Willis International Group.
The two sides are also expected to jointly finance the construction of a 552km railway.
Mr Baatar said Simandou had the potential to help decarbonise the Chinese steel industry.
Bartol said: "We think that part of the ore body we are studying is very suitable for direct reduced iron. The only way to decarbonise the global steel manufacturing industry is to decarbonise China."
First production from the two blocks co-owned by Rio Tinto is expected to increase to 60 million tonnes of annual capacity within 30 months from 2025. Its share of production will reach 27 million tonnes.
