Australia-based miner Rio Tinto has built up approximately two million mt of high-grade iron ore at its Simandou project in Guinea in preparation for a first shipment slated for mid-November, according to a report by Reuters.
Infrastructure and supply implications
The Simandou project holds an estimated four billion mt of ore averaging 65 percent iron content and is expected to reach an annual output of 120 million mt, potentially increasing seaborne supply by 8-9 percent when fully ramped.
Market and regional impact
The launch of production from Simandou is likely to exert downward pressure on global iron ore prices, especially affecting higher-cost producers. The project is also expected to boost Guinea’s GDP significantly by 2030.
Timeline and next steps
Exports are expected to begin with a vessel loading in November, with the port and rail infrastructure nearing completion. Ownership of Simandou is divided among Rio Tinto, Chinese state-owned Chalco, and a Singaporean-Chinese consortium.