Fortescue, SMB-Winning go head-to-head to develop Guinea’s Simandou iron ore
Australian miner Fortescue and Guinea’s biggest bauxite exporter SMB-Winning are the last two companies in the running for the rights to develop blocks 1 and 2 of Guinea’s Simandou iron ore deposit, three sources told Reuters on Friday.
Simandou holds over two billion tonnes of iron ore reserves and some of the highest grades in the industry (66% – 68% Fe which attracts premium pricing).
A Guinea government commission in charge of the international tender for Simandou blocks 1 and 2 should come to a final decision in around a month, the sources close to the commission said.
A Guinea government commission in charge of the international tender for Simandou blocks 1 and 2 should come to a final decision in around a month
Guinea has struggled for decades to develop its Simandou iron ore deposit which is among the world’s biggest and contains billions of tonnes of high-grade ore.
Simandou has been mired in protracted legal disputes, and the high cost of infrastructure to transport the ore out of the remote southeastern corner of Guinea has also put a dampener on potential developers’ enthusiasm.
The government insists that ore from Simandou must be exported through Guinea, requiring the developer to build a 650 kilometre railway to Guinea’s coast as well as a deep-water port, taking the overall cost of developing the deposit to around $23 billion.
The consortium of Societe Miniere de Boke (SMB) and Singapore’s Winning, which is Guinea’s biggest bauxite exporter, confirmed it had submitted an offer.
Brazil’s Vale had also purchased access to the project data, but did not submit an offer, the sources said.
Fortescue was not immediately available to comment, and Vale declined to comment.
Simandou blocks 1 & 2 became available after a settlement between Guinea’s government and billionaire Beny Steinmetz’s BSG Resources in February.
Blocks 3 and 4 are owned by a joint venture of Rio Tinto, China Aluminium Corp (Chinalco), and the Guinean government.
source: Mining.com
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Rio Tinto, BHP, and BlueScope to build ‘green iron’ plant
Tiny but vital metal markets rush to adjust to Chinese clampdown
Petra Diamonds cuts forecasts, jobs amid market weakness
El Salvador president proposes bill to overturn metals mining ban
China’s 2025 steel demand to fall 1.5% on year, state research institute says
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Tiny but vital metal markets rush to adjust to Chinese clampdown
Petra Diamonds cuts forecasts, jobs amid market weakness
El Salvador president proposes bill to overturn metals mining ban
China’s 2025 steel demand to fall 1.5% on year, state research institute says
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project