Guinea’s Simandou Iron Ore Project to Reach Full Production in Second Year

Iron Ore

Guinea’s government has announced that the Simandou iron ore project is expected to reach full production capacity by its second year of operation. According to the country’s Minister of Mines and Geology, Buna Sylla, production is set to begin in December 2025, with initial output reaching 30 million tons per mine in the first year.

Production Projections and Stakeholders

The Simandou deposit, one of the world’s largest iron ore reserves, is projected to yield 60 million tons annually per mine in its second year, bringing total output to 120 million tons. The vast deposit is divided into four blocks:

• Blocks 1 and 2 are developed by a consortium that includes Winning International Group, Weiqiao Aluminum (a subsidiary of China Hongqiao Group), and United Mining Suppliers.
• In June 2024, Baosteel became the primary shareholder in the Winning Consortium Simandou (WCS) project after acquiring a stake transfer.
• Blocks 3 and 4 are operated by Rio Tinto and Aluminum Corporation of China (Chinalco).

Strategic Importance of Simandou

Simandou boasts iron ore reserves of approximately 4.41 billion tons, making it a crucial asset in the global supply chain. The project is set to supply high-quality iron ore, a vital raw material in the green transition of steel production. Given its estimated annual output, Simandou will be the world’s largest high-grade iron ore deposit, significantly reducing dependence on traditional suppliers from Australia and Brazil.

As previously reported by GMK Center, Baosteel anticipates the completion of infrastructure construction by late 2025, at which point iron ore extraction will commence. This milestone aligns with China’s broader strategy to secure sustainable and diversified raw material sources for its steel industry.