Guinea seeks developers for Simandou iron ore deposit
Guinea has launched an international tender for blocks 1 and 2 of Simandou, giving companies until Aug. 2 to outline their bids, as the country seeks to revive interest in the world’s largest undeveloped iron ore deposit.
Guinea’s aspirations to develop Simandou have foundered because of the cost of infrastructure and protracted legal disputes, but strong iron ore prices and the resolution of some of the problems have increased the chances that developers can be found.
Government sources, speaking on condition of anonymity, said western mining groups and companies from Asia had shown interest in Simandou
Mines Minister Abdoulaye Magassouba told Reuters the international tender would be “open, competitive and transparent.” The deadline for companies to express interest is Aug. 2 and the process should be completed 30 days after that, an official close to the tender said.
Government sources, speaking on condition of anonymity, said western mining groups and companies from Asia, including China, had shown interest in Simandou, which has a very high grade.
High grade iron ore commands a premium and has become sought after by countries, including China, because processing it creates less pollution than lower grade ore.
Blocks 1 and 2 have become available following the resolution of one of the legal cases that have embroiled Simandou. Billionaire Beny Steinmetz’s BSG Resources (BSGR) said it would walk away from the Simandou project, but retain the right to mine the smaller Zogota deposit.
The Guinean government has said ore mined from Simandou must be shipped from its own ports, presenting a challenge for prospective developers as its location is 650 kilometres from Guinea’s coast.
Guinea has said ore from Zogota can be shipped using a Liberian route. Those involved in Zogota have said activity around the smaller, more manageable project could help to release the deadlock around Simandou.
One industry source said Australian iron ore company Fortescue Metals was interested in the Simandou tender.
Fortescue Metals had no comment.
The Facebook page representing the office of Liberian President George Weah said Fortescue chairman Andrew Forrest was among a group of potential investors who signed an outline cooperation deal on Liberian rail improvements on July 14.
Fortescue Metals said it had not signed a deal with Liberia over iron ore.
Anglo-Australian miner Rio Tinto holds a 45.05% stake in Simandou’s remaining blocks 3 and 4 which it has been trying to sell.
An outline deal to divest the stake to partner Aluminum Corp of China (Chinalco), which holds 39.95 percent, lapsed last year without producing an agreement, with sources citing as one obstacle China’s wish to control all four blocks.
source: MINING.COM
Top News
Six last month
MinRes halts Bald Hill mine amid lithium price rout
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Swapping aluminum for copper will maintain China’s resources, group says
Gold loses some luster after Trump’s decisive win
Hedge funds slash bullish wagers on gold over Trump election win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Families gather at South African mine shaft where hundreds are feared stuck underground
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
