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SBM Winning Consortium Bags Simandou Block 1 and 2 Iron Ore Deal in Guinea

Mining News - Published on Thu, 14 Nov 2019

Image Source: amazonaws.com
Societe Miniere de Boke and Winning consortium, representing Chinese, French, Singaporean and Guinean interests, has won the rights to develop Guinea's major Simandou iron ore deposit in Guinea. It will develop Simandou's blocks 1 and 2, at an investment of USD 14 billion, which will include construction of 650 kilometer rail line and port infrastructure. SMB-Winning aims to bring the deposit to production within five years of the agreement being ratified. Investors in SMB-Winning consortium include the Yantai Port Group, Guinea's government, and Chinese aluminium producer Shandong Weiqiao, a subsidiary of China Hongqiao.

Australian Fortescue Metals Group had offered USD 9 billion for the two blocks but had not committed to build the Transguinean railway link and port facilities.

Simandou is classed as the world's largest untapped high grade iron ore deposit, a project developed for Simandou's blocks 1 and 2 several years ago by Brazil's Vale, whose rights to the area were later revoked during a dispute with Israeli mining tycoon Beny Steinmetz's BSG Resources, envisage high-grade production at the site of some 50 million tonnes per year. The two blocks became available after a settlement in February between Guinea's government and Israeli billionaire Beny Steinmetz's BSG Resources following a protracted legal dispute.

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Posted By : Rabi Wangkhem on Thu, 14 Nov 2019
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