After the signing of a Framework Agreement in March 2022 between Guinea, Rio Tinto’s Simfer SA and the Winning Consortium Simandou (WCS) and the incorporation of ‘La Compagnie du TransGuinéen SA’ (a joint venture established between them to co-develop the Simandou railways and port infrastructure) in July 2022, the Simandou project reached another significant milestone on December 23, 2022 with the signing of the foundational termsheet for the financing, development, construction and operation of the railway and ports infrastructure; and the addition of China state-owned Baowu Group, China’s largest steelmaker, to the JV partners.
The JV partners include Guinea, Baowu Group (leading a consortium of Chinese steel manufacturers and other investors), Simfer Jersey (a joint venture between Rio Tinto and a consortium led by China’s state- owned Chalco Iron Ore Holdings) and WCS (a consortium comprising the Winning International Group, China Hongqiao Group, Guinean mining logistics company UMS, as well China’s Yantai Port Group).
Construction is currently expected to be completed before December 31, 2024 and operations to begin by 31 March 2025.
