Guinea Begins Iron Ore Exports From World’s Largest Untapped Reserve

Guinea has officially begun exporting iron ore from the vast Simandou project, home to the world’s largest known high-grade iron ore reserve, marking a historic milestone for the West African nation after decades of delay and political setbacks.

“This must be for us what oil was for the Gulf states,” said Diba Diakité, Chief of Staff to Guinea’s Presidency, during the launch ceremony on Tuesday. “The commissioning of the integrated Simandou mining and infrastructure project represents a historic day for the people of Guinea who have waited generations for this moment.”

The $20 billion project includes a 650-kilometer railway line connecting the mountainous iron ore deposits in southeastern Guinea to two deepwater export terminals on the Atlantic coast.

At full capacity, Simandou is expected to produce 40 million tons of iron ore by 2026, ramping up to as much as 120 million tons in 2027, positioning Guinea as a significant new force in the global iron ore market.

“This represents a turning point in the execution of a project of this magnitude,” said Simon Trott, Chief Executive of Rio Tinto Iron Ore, one of the project’s main partners. “We have built more than a mine, we have created an engine for economic transformation.”

Chinese interests play a major role in the venture. The project is divided into four operational blocks: Blocks 1 and 2 are controlled by the Winning Consortium Simandou, backed by several Chinese firms including China Baowu Steel Group. Blocks 3 and 4 are managed by Rio Tinto and Aluminum Corporation of China (Chinalco) through their joint venture Simfer.

“Simandou marks a new beginning for accelerated growth in Guinea,” said Xi Bing, Vice President of China Baowu Steel Group. “It will also contribute to a low-carbon economic transition while strengthening supply links between Guinea and China’s vast steel market.”

According to Mamoudou Nanganlin Barry, Chairman of Société du TransGuinéen, the entity overseeing the railway and port infrastructure, Simandou’s operational ramp-up will transform Guinea into a global player in iron ore exports.

“From now on, no discussion about iron ore will take place without mentioning Guinea,” Barry told reporters. “Thanks to the agreements we’ve signed, we now have the capacity to influence the iron ore market.”