Military Junta in Guinea Orders to Stop Simandou Project

SEATTLE (Scrap Monster): The ruling military leadership in the West African nation of Guinea Ordered suspension of all activities at the Simandou iron ore deposit owned by Rio Tinto and a consortium led by Chinese bank. The leadership alleged that there has been no progress in the project.

Incidentally, Simandou holds more than 2 billion tonnes of high-grade ore and is the largest known deposit of its kind. The project has been left untapped for several years now, following legal disputes.

In his statement, Mamady Doumbouya, interim president of the country said that there has been no progress by any means in the development of the project. He questioned the operational mode, seeking clarifications as to how the project will ensure that interests of Guinea will be preserved. Also, he ordered that all activity on the ground should be ceased with immediate effect.

The leadership has been pressurizing Rio Tinto and the Winning Consortium Simandou (WCS) to collaborate on a costly railway needed for transportation of iron ore from Simandou. However, the Simandou partners have not been able to reach an agreement on that matter.

The gigantic deposit has the capability to produce around 150 million tonnes of iron ore per year, thus making Guinea the world’s third largest iron ore exporter, after Australia and Brazil.

YOU MAY ALSO BE INTERESTED IN:

BHP Group Half-Yearly Profits Recorded Notable Surge

Fortescue Metals Shipments Hit Fresh Record