China-backed Guinea iron ore project starts production

The Simandou iron ore project in Guinea, the world’s largest untapped reserves of high-grade ore, officially began production on Tuesday, marking a historic milestone that could reshape the global steelmaking market and advance China’s overseas resource ambitions, reports Caixin. The launch ceremony at Morebaya Port attracted high-profile attendees, including Chinese Vice Premier Liu Guozhong, representing Chinese leader Xi Jinping; Guinean junta leader Mamadi Doumbouya; the presidents of Gabon and Rwanda; and dignitaries from Côte d’Ivoire and Singapore. Executives from Chinese state-owned enterprises and Anglo-Australian mining giant Rio Tinto Group also attended.

With total investment exceeding $20 billion, the Simandou project spans the entire value chain—mines, railways, and ports—and is expected to significantly reduce China’s reliance on iron ore imports from Australia and Brazil.

The first 10,000-tons shipment set out in October from the remote southeastern mine, traveling along the newly built 552-kilometer Trans-Guinea Railway to the Atlantic coast. There, it was barged from Morebaya Port to a 200,000-ton Capesize carrier for its 45-day voyage to China via the Atlantic, Indian Ocean and South China Sea.