Guinea Mining Ministry Orders Halt in Activities at Simandou Iron Ore Project

SEATTLE (Scrap Monster): The Mines Ministry of Guinea has ordered full suspension of activities related to the Simandou iron ore mine project. This follows failure of two companies to form a joint venture as agreed, even after the extended deadline.

According to Mines Minister Moussa Magassouba, Simfer, a Rio Tinto subsidiary and Chinese-backed consortium Winning Consortium Simandou (WCS) have been showing a “lack of willingness” to work on a partnership. There exists a major discrepancy between the visions of both the companies in implementing the terms of the framework agreement. The Minister termed the situation as not only regrettable, but above all unacceptable.

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The Minister alleged both the companies for obstructing the realization of the project, despite significant concessions by the Guinea State authorities. The authorities had even warned the companies that they risked losing their licenses if they failed to meet the construction deadline for the project. The Minister had set deadlines of December 2024 for completion of infrastructure projects and March 2025 for commencement of commercial production.

Meantime, analysts are of the view that the country’s decision to suspend all activities at the Simandou project is more of a “power struggle” between the miners and Guinean authorities over recommendations in relation to the rail and port infrastructure.