Rio Tinto (NYSE, LSE, ASX: RIO) expects to ship its first iron ore from the Simandou project in Guinea this November, Gerard Rheinberger, the company’s managing director for Simandou, told Reuters.
Located in the country’s southeast, Simandou is poised to become the world’s largest mine for high-grade iron ore, a critical input in low-carbon steelmaking. Once operational, the site is expected to produce 120 million tonnes of iron ore annually.
The project is predominantly backed by Chinese firms, which control 75% of its output. Rio Tinto, the world’s largest iron ore producer, holds the remaining 25%. The deposit is split into four blocks: Rio Tinto Simfer — a joint venture between Rio Tinto, Chalco Iron Ore Holdings, and the Government of Guinea — is developing blocks three and four in the south. The northern blocks are managed by a consortium including Singapore-based Winning International Group, China Hongqiao Group’s Weiqiao Aluminium, and United Mining Suppliers.
Australia deal
Rio Tinto also announced on Monday it had reached an agreement to sell a 30% stake in its Winu copper-gold project in Western Australia to Japan’s Sumitomo Metal Mining.
The $399-million deal includes an upfront payment of $195 million, with up to $235.4 million in additional payments tied to future project milestones, including potential mill expansion.
The move follows a December agreement between the two companies to form a joint venture to develop and operate Winu. Discovered by Rio Tinto in 2017, the project remains undeveloped. As of the end of 2024, the site holds an estimated 741 million metric tonnes in indicated and inferred resources, including roughly 3 million tonnes of copper and 250 tonnes of gold, Sumitomo said in the statement.
Rio Tinto is currently advancing a pre-feasibility study for a mill capable of processing 10 million tonnes per year and has begun environmental permitting.
Be the first to comment on "Rio to ship Guinea iron ore this year; sells Winu stake"