Guinea Simandou Iron Ore Project
has made significant progress!
On December 22, China Baowu, Win Win Alliance Holding Company, Simfer and the Guinean government jointly signed the Simandou Infrastructure Project Term Sheet in Conakry, the capital of Guinea. It has become an important cooperation consensus to jointly invest and develop the railway, port and other infrastructure needed for the overall development of the Simandou project. This move is believed to remove the biggest obstacle for the Simandou iron ore project – infrastructure construction. Prior to this, the huge investment in infrastructure construction has been the biggest topic of discussion between all parties of the Simandou project and the Guinean government.
This is a landmark agreement signed by the four parties of the project on the investment structure, investment conditions, construction mode, localization policy and other cooperation conditions of the infrastructure company after the establishment of the trans Guinea company (“La Compagnie du TransGuin é en”, hereinafter referred to as “CTG”) on July 27 and the signing of the core terms of the Simandou North Block Project Cooperation Agreement by Baowu Resources and Win Alliance Holding Company on September 30, It will lay a solid foundation for the successful development of Simandou Iron Mine. The final investment of Baowu Consortium led by Baowu in the project is also subject to the relevant approval of the Chinese and Guinean governments.
As a leader in the global steel industry, China Baowu will take the signing of the term sheet as an opportunity to accelerate the negotiation of the CTG shareholder agreement, take the lead in the formation and implementation of the project financing of the Baowu consortium, join hands with all partners to accelerate the substantive development of the project, and jointly create the Simandou development blue chart.
Simandou Iron Ore Mine is located in Kerouane Province in the southeast of Guinea. It is the undeveloped iron ore with the largest reserves and the highest quality in the world. The development of Simandou Iron Mine requires the construction of a railway with a length of more than 600 kilometers across the east and west of Guinea, as well as ports and other infrastructure along the west coast. Simandou Iron Mine has the capacity to produce 120 million tons of high-quality iron ore annually at the initial stage. Its development will further promote the industrialization and economic development of Guinea, and will provide a green low-carbon metallurgical charge choice for the high-quality development of China and even the global steel industry.
