In a major development, global mining giant Rio Tinto has revealed plans for a substantial investment of $6.2 billion in the Simandou iron ore project located in Guinea. This investment is part of Rio Tinto's broader capital expenditure strategy, projecting an annual investment of around $10 billion from 2024 to 2026.
Simandou stands as the world's largest untapped high-grade iron ore deposit, and Rio Tinto aims to take a leading role in its development. If the project secures approval, it has the potential to emerge as the most extensive greenfield integrated mine and infrastructure investment on the African continent.
Rio Tinto has entered into a strategic joint venture named Simfer, collaborating with China's Chalco Iron Ore Holdings (CIOH) and the Guinean government. Under this joint venture, Rio Tinto holds a majority stake of 53%, while CIOH owns the remaining shares.
The mining company is set to contribute an estimated $6.2 billion towards the initial development phase of the Simandou mine. Rio Tinto's engagement in Simandou revolves around the ownership of two mines, with the commencement of the first production anticipated in 2025. A gradual ramp-up of operations is expected over a span of 30 months, marking a significant milestone in the global mining landscape.
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