Fatal accident forces WCS to halt iron site at Simandou

Winning Consortium Simandou (WCS), the company that’s developing Blocks 1 and 2 of the massive Simandou iron ore project in Guinea, has halted operations after a fatal accident killed three foreign workers.

WCS confirmed the incident and said it is reviewing safety protocols.

“Emergency procedures were immediately activated, and medical teams at the local hospital made every effort,” the company said in a post on LinkedIn, without providing details about the accident’s cause. “Tragically, three foreign colleagues lost their lives. Operations at the Kérouané site have been suspended to allow for a complete review of safety procedures. A thorough investigation is underway, in coordination with the relevant authorities, to determine the causes of this tragic incident.”

Operations would resume only when safety conditions are fully assured, Bloomberg News reported.

This is the second fatality-linked shutdown at Simandou in less than two months. In late August, Rio Tinto (ASX: RIO) and its partner Chinalco suspended activity at their Simfer site in the southern section of the range after a contract worker died.

The incident at WCS work site brings the total number of fatalities at Simandou to 14 since November 2023.

Highest grade ore

Simandou is home to the world’s largest known untapped deposit of high-grade iron ore, estimated at 2.4 billion tonnes. The site is divided into four blocks. While WCS oversees the northern half, Rio Tinto and Chinese state-owned Chinalco, in partnership with the Guinea government, are developing Blocks 3 and 4.

Once operational, Simandou is expected to become the world’s largest and highest-grade new iron ore mine, producing 120 million tonnes of premium ore annually, with first ore in the Rio Tinto-controlled area targeted for November. The deposit contains ore with an iron content of around 65%, prized for its efficiency in steelmaking and lower environmental impact.

Rio Tinto first secured exploration rights to Simandou in 1997. Progress has been repeatedly delayed by political instability, including two coups, four heads of state, and three presidential elections.

The broader project includes a 600-km railway and a new deep-water port on Guinea’s Atlantic coast. Rio Tinto will operate one of the two mines supplying the infrastructure.

Simandou remains a flagship project for Guinea, holding major economic promise through job creation, infrastructure development, and increased export revenue.

Shares in Rio Tinto gained 1.4% to A$124.05 apiece on Thursday in Sydney, giving the company a market capitalization of A$45.5 billion ($29.9 billion).