A second mine, the WCS undertaking, might be constructed by Baowu — the world’s largest metal producer — in partnership with a consortium led by the Singapore-based Successful Worldwide Group.
Rio Tinto first secured an exploration license for Simandou in 1997. Since then, the nation has skilled two coup d’état, seen 4 heads of state and undergone three presidential elections.
The undertaking includes the development of a 552km rail line to move high-grade iron ore from two new mines within the Simandou mountains — one to be constructed and operated by Rio Tinto — to a brand new deep water port on Guinea’s Atlantic coast.
“Solely” $11.6 billion wanted to begin
Rio Tinto estimates the event requires preliminary funding of about $11.6 billion. The corporate’s annual capital funding from 2024 to 2026 has been pegged at about $10 billion, with the bulk going to Simandou as spending winds down at the Oyu Tolgoi undertaking in Mongolia past this 12 months.
The corporate famous that CIOH has fulfilled its monetary obligations by making two funds to cowl its share of capital expenditures for important works carried out by Simfer.
Rio stated the primary cost of round $410 million was made on June 28, overlaying bills as much as the tip of 2023, and the second cost of about $575 million, for 2024 expenditures, was made on July 11. These funds settle all bills incurred as much as the present date.
The infrastructure capability developed in collaboration might be break up equally between Simfer and WCS, with Simfer specializing in blocks 3 and 4 for a 60 million tonne per 12 months mine, and WCS growing blocks 1 and a couple of of Simandou.
Simandou is slated to start industrial manufacturing by the tip of 2025, including an annual provide of round 120 million tonnes of high-quality iron ore after it reaches full capability.
Rio Tinto, which reported second-quarter iron ore shipments beneath analyst estimates earlier on Tuesday, stated its share of anticipated capital funding remaining to be spent in Simandou now sits at $5.7 billion, counting from the start of 2024.
Simandou has confronted development delays attributable to authorized disputes, native political adjustments, and the challenges and bills of constructing a 600 km rail and port infrastructure.