Rio Tinto is expecting its first production of high-grade iron ore from the Simfer mine in Guinea to commence in 2025, ramping up over 30 months to an annualised capacity of 60 million tonnes per year.
The mine, it said will initially deliver a single fines product before transitioning to a dual fines product of blast furnace and direct reduction ready ore.
Simfer's capital funding requirement for the Simandou project is estimated to be about $11.6 billion, of which Rio Tinto's share is $6.2 billion.
Rio Tinto recently completed its investment to develop the Simandou high-grade iron ore deposit, including completing necessary Guinean and Chinese regulatory approvals.
It said this allows Simfer to invest in and fund its share of co-developed rail and port infrastructure being progressed in partnership with Winning Consortium Simandou (WCS), Baowu and Guinea.
"Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto's portfolio for the decarbonisation of the steel industry, along with trans-Guinean rail and port infrastructure that can make a significant contribution to the country's economic development," said Rio Tinto executive committee lead for guinea and copper chief executive Bold Baatar.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
