Page 27 - Simandou News Today

Construction Restarts at Chinese-Backed Simandou Iron Ore Mine - Work on the West African mine, said to hold the world’s largest untapped deposit of high-grade iron ore, resumed after Guinean officials were finally able to get shareholders to move forward

The Guinea Government, and Rio Tinto and its partners have resumed work on infrastructure to restart the Simandou iron ore mine.

A ceremony for the resumption of the Simandou mining project, the worlds largest undeveloped iron ore deposit, took place on Saturday, the Guinean government announced on Sunday, meaning the project has officially entered into substantive development after a one-year suspension.

The government of Guinea and its partners have resumed work on building the Simandou infrastructure and mine.

The $15 billion Simandou project was restarted Saturday.

Bearish sentiment continues to dominate the oil market, putting oil prices on course for a more than 10% weekly loss.

Since the 2021 coup Guinea’s new rulers have promised that the mining sector will operate in the interest of the country, but dependence on international mining companies is softening the junta's stance.

The two consortia involved in the Simandou iron ore project seem to be reluctant to pledge the $500m sought by the construction groups to restart the rail construction work that was stopped in 2022.

The drums of war have been beating loudly over the past two weeks. But there is a commercial logic to China avoiding a war that would cripple its economy.

Guinea's transitional government ordered work to stop last July to try to force the shareholders to agree on joint venture terms.