AMN - GUINEA: Simandou South studies submitted

Simfer has submitted the mine and infrastructure Bankable Feasibility Studies for the Simandou South iron ore project in Guinea. The studies outline the details around development of the world-class iron ore mine and the multi-user and multi-usage infrastructure project.

They are based on comprehensive analysis carried out over the past two years by Simfer, China Harbour Engineering Co (CHEC), China Railway Construction Corp (CRCC) and other international mining and construction contractors.

Simfer submitted the studies to the Government of Guinea in Conakry and has completed other defined in-country activities in accordance with the terms of the 2014 Investment Framework.

Simfer is a joint-venture company ultimately owned by the Government of Guinea (7.5%), Rio Tinto(46.6%), Chalco Iron Ore Holdings, a consortium of Chinese state-owned enterprises led by Aluminium Corp of China(Chinalco) (41.3%), and the IFC (4.6%).

The Simandou project provides access to one of the world’s largest known untapped (more than 2000 million tonnes), high grade iron ore resources in the world. It can sustain a mine life in excess of 40 years and has the potential to make Guinea one of the world’s top iron ore exporters.

The Simandou project includes three key components:

-          The mine: An iron ore exploration and mining project located towards the southern end of the 110km-long Simandou mountain range, 550km southeast of Conakry. It is to be a conventional open pit mine with an expected capacity of 100 million tonnes/year of iron ore

-          The infrastructure: Includes a new 650km trans-Guinean railway line to transport iron ore from the Simandou mine to a new deep-sea port, located south of Conakry on the MorebayaRiver. Both rail and port will be available for use by third parties, on prescribed terms

-          Ancillary infrastructure: Access roads, accommodation, power generation and water systems to directly support the Simandou Project.

www.riotinto.com; www.chinalco-cmc.com/eindex.htm; www.ifc.org

News courtesy of International Mining