This helps us to provide you with a good experience when you browse our website and also allows us to improve our site. Simandou could dampen iron ore prices once it reaches full production. The second component is the construction of a railway line, which will be approximately 650km long, to transport the extracted ore. In 2017, Beijing agreed to loan President Condé’s administration $20 billion over almost 20 years in exchange for bauxite concessions. Analysts say Guinea’s population has so far seen little benefit from Chinese investment. Estimates peg the cost at as much as $13 billion. Rio Tinto (ASX, LON,NYSE: RIO) is suddenly in a rush to develop the giant and controversial Simandou iron ore project in Guinea, as half-year earnings support an investment case for the steel-making material. Rio Tinto’s next CEO faces a decision on a costly but coveted African project that ‘represents a major threat to long-term iron-ore prices’ Mist shrouds the Simandou mountains in … Rio Tinto once saw Simandou as central to its ambitions to become the world's top iron-ore producer after winning the rights to mine a 300-square-mile area in 2006. The Simandou Saga & China’s Threat To Africa. The financial burden of building a 650-km (400-mile) railroad stretching across Guinea to ports has always been a roadblock for developers. Simandou is divided into four blocks, blocks 1 and 2 are controlled by SMB-Winning, a Chinese and Singaporean-backed consortium, and blocks 3 and 4 are controlled by Anglo-Australian multinational mining company Rio Tinto alongside Chinese partner, Chinalco. We won't process that personal data for other purposes except where required to meet our legal obligations or otherwise as authorised by law and notified to you. The state-owned Assets Supervision and Administration Commission (SASAC), which oversees the largest government-owned enterprises in China, is currently fine-tuning details. Blocks 1 and 2 are controlled by a consortium backed by Chinese and Singaporean companies. Because Simandou was unlike anything anybody had ever seen. Rio Tinto (ASX, LON,NYSE: RIO) is suddenly in a rush to develop the giant and controversial Simandou iron ore project in Guinea, as half-year earnings support an investment case for the steel-making material. Photograph: PR Company Handout. With the exception of the use of cookies (explained below), Rio Tinto generally does not seek to collect personal data through this website. These Cookies are used by advertising companies to inform and serve personalised ads to your devices based on your interests. The deposit is comprised of four blocks. But their key focus — Well, that’s always been iron ore. Save my name, email, and website in this browser for the next time I comment. The non-binding heads of agreement, originally signed on 28 October 2016, for Chinalco to acquire Rio Tinto's entire interest in the Simandou iron ore project in Guinea has lapsed. With your consent, our website uses cookies to distinguish you from other users of our website. Rio Tinto Group is accelerating work toward potential development of the giant Simandou iron ore project in Guinea, as half-year earnings showed … Rio Tinto’s efforts to re-secure the blocks were stymied, and in April 2010, Vale announced that it would pay $2.5 billion for a 51% interest in BSG. Beijing is actively pushing forward with the project and a decision should come soon, sources familiar with the process told MINING.COM. The main reason that Rio Tinto is pushing forward with such a huge project is the fact that Simandou is one of the world's largest untapped, high-grade resources of iron ore. If you choose to subscribe to our media releases or other communications, you can unsubscribe at any time (by following the instructions in the email or by contacting us at digital.comms@riotinto.com). Your email address will not be published. The first component is the development of the mine, which is expected to produce 100 million tonnes of iron ore per year. With the exception of the use of cookies, Rio Tinto generally does not seek to collect personal data through this website. The Government of Guinea owns a 15 per cent stake in the project. Rio Tinto and Chinalco, who respectively own 45.05 per cent and 39.95 per cent of Simandou, will continue to work with the Government of Guinea to explore other options to realise value from the world-class Simandou iron ore … Rio Tinto chief executive Jean Sebastien Jacques has confirmed for the first time the company is discussing the development of Africas Simandou deposit with Chinese steel giant Baowu, in … Rio is in talks with its Chinese partners to try determining the costs of developing their half share of Simandou. © 2020 Glacier Media Group, All Rights Reserved. A cookie is a small file of letters and numbers that we store on your browser or the hard drive of your computer if you agree. Rio Tinto has been embroiled in a number of corruption allegations over its acquisition of stakes in the Simandou iron ore mine in Guinea. We produce iron ore for steel, aluminium for cars and smart phones, copper for wind turbines, diamonds that set the standard for “responsible”, titanium for household products and borates for crops that feed the world, Rio Tinto is a mining and metals company operating in about 36 countries around the world, We produce materials essential for human progress, Iron ore, one of the most abundant metals on Earth, is the primary raw material used to make steel, We work in about 36 countries – in mines, smelters and refineries, as well as in sales offices, data centres, research and development labs, In the Pilbara region of Western Australia, we own an integrated portfolio of iron ore assets: a world-class, integrated network of 16 mines, We work hard to leave a lasting, positive legacy everywhere we work, We believe that greater transparency and accountability helps build trust and encourages sustainable business practices across our industry, We aim to deliver superior returns to our shareholders while safeguarding the environment and meeting our obligations to wider society, Discover the work we're doing with innovation, communities and our employees, From underground miners to data scientists, we want your hard work, dedication and outside-the-box thinking. A cookie is a small file of letters and numbers that we store on your browser or the hard drive of your computer if you agree. (Rio Tinto Simandou) Image courtesy of Rio Tinto Simandou The oldest known mine in the world was discovered in the hills around Ngwenya (Swaziland). UK-Australian mining firm Rio Tinto has resurrected plans to develop its high-grade Simandou iron ore project in Guinea and raised the prospect of a joint venture with Chinese consortium SMB-Winning, putting pressure on Rio Tinto's rivals in the Pilbara region of Western Australia. Rio Tinto is an Anglo-Australian company that is primarily focused on the extraction of minerals. Simandou has been the scene of much controversy for Rio over the past decade, most notably over the payment of $US10.5 million to a political … However if you choose to provide personal data to Rio Tinto through this website (for example, by sending us an email), we will process that personal data to answer your query and if relevant, to manage our business relationship with you or your company. We won't process that personal data for other purposes except where required to meet our legal obligations or otherwise as authorised by law and notified to you. This helps us to provide you with a good experience when you browse our website and also allows us to improve our site. The third component is the construction of a new port and associated infrastructure in the Forécariah prefecture to … “Under all scenarios Simandou will be developed, with or without Rio Tinto,” chief executive Jean-Sébastien Jacques told Bloomberg News. That guaranteed Rio tenure for the lifetime of the Simandou mine. Required fields are marked *. For over a decade, it seemed that Guinea’s crown jewel deposit would never be mined, as it was caught up in wrangles between companies that held rights to it and the authorities in the West African nation. Iron ore accounted, once again, for the lion’s share of the … Various tensions between China and the US have substantially increased geopolitical risk and heightened Beijing’s concern with resource security. These Cookies also facilitate sharing information with social networks or recording your interactions with particular ads. As some data privacy laws regulate IP addresses and other information collected through the use of cookies as personal data, Rio Tinto’s processing of such personal data needs to comply with its Data Privacy Standard (see Part 1 of our Privacy Policy), and also applicable data privacy laws. So when the company acquired the exploration rights at Simandou back in 1997, many people thought it would change the company’s fortunes forever. Announcement came as the Swiss firm revealed an ambitious plan to reach net-zero emissions by 2050. Iron ore surges 6% to March 2013 high on Friday as Brazil supply worries, a red hot China economy, and a Beijing-Canberra row convulse seaborne trade. The country is also the world’s top iron ore consumer, with its demand set to hit 1.225-billion tonnes by the end 2020, according to a government think tank. Rio Tinto’s Simandou iron ore project in Guinea. As part of the agreement, Steinmetz’s company agreed to walk away from the asset, but retained the right to mine the smaller Zogota deposit. Tackling Emissions Across our Value Chain. The world’s no. In 2008, one of Guinea’s former dictators stripped Rio Tinto’s rights over two of the four blocks the deposit had been divided on and handed them to Israeli billionaire Benny Steinmetz’s BSG Resources (BSGR). How we process personal data provided or obtained through this website. IOC, majority owned by Rio Tinto, operations are integrated across a mine and processing plant in Labrador City, Newfoundland and a port and stockpile in Sept-Iles, Quebec. These Cookies allow us to analyse site usage in order to evaluate and improve its performance. “There is a huge incentive for the Chinese to make it happen now,” he said, referring to the industrial activity increase in the Asian giant. 60 views; 4 minute read Jacques noted the company has been working with its Chinese partners to try determining the costs of developing their half share of Simandou. Iron ore accounted, once again, for the lion’s share of the second-biggest miner’s profits for the six months to June 30. – Business in the developing world! Drill crew at Rio Tinto’s portion of Simandou. The deposit is not just massive — it holds two billion tonnes of iron ore — but the output is expected to have some of the highest grades in the industry. Rio Tinto owns 45.05% of Blocks 3 and 4, with China’s Chinalco holding a 39.95% and the Guinean government a 15%. (. The French engineer, educated at École Centrale Paris, had previously spearheaded the Oyu Tolgoi copper megaproject in Mongolia and pushed out Rio Tinto’s developers in charge of the Simandou iron ore deposit in Guinea, a project he didn’t believe in. Rio Tinto has reconstituted its Simandou development team in the wake of the government of Guinea’s successful tender of the two northern blocks of … 1 iron ore miner was able to keep the two southern blocks, but only after paying $700 million to the government in 2011. The non-binding heads of agreement, originally signed on 28 October 2016, for Chinalco to acquire Rio Tinto's entire interest in the Simandou iron ore project in Guinea has lapsed. “Analysts say Guinea’s population has so far seen little benefit from Chinese investment” China and Rio Tinto are only interested in lining there pockets and could not care less if the people see anything. Chinalco could yet pick up the blocks formerly held … RIO Tinto was making progress with the development of Simandou, a large iron ore project in West Africa’s Guinea, said Bloomberg News citing Jean-Sebastien Jacques, CEO of the mining group. If you choose to subscribe to our media releases or other communications, you can unsubscribe at any time (by following the instructions in the email or by contacting us). There is additional information in the appendices to the Data Privacy Standard, including information about disclosures, trans-border data transfers, the exercise of data subject rights and how to make complaints or obtain further information relating to Rio Tinto’s processing of your personal data. The mine development principally involves three components. With your consent, our website uses cookies to distinguish you from other users of our website. These Cookies are used to provide a better user experience on the site, such as by measuring interactions with particular content or remembering your settings such as language or video playback preferences. Cookies contain information that is transferred to your computer's hard drive. In 2008 Rio Tinto Group, the licensee of the Simandou concession, was ordered by the Guinean government to relinquish the northern half (Blocks 1 and 2, east and southeast of Kérouané) to BSG Resources, a company controlled by the Israeli diamond investor Beny Steinmetz. Your email address will not be published. But those plans soon foundered in a country with few skilled workers and poor infrastructure. They help us know how often you come to our site and when, how long you stay and any performance issues you experience whilst you are on our site. With Chinese funding, the project becomes much more feasible. consortium backed by Chinese and Singaporean companies. Several investigations over bribery and corruption followed, until a settlement between Steinmetz and Guinea was reached early last year, ending the bitter and long-dragged out dispute involving Rio Tinto, Vale and BSGR. That deal came under scrutiny in 2016, forcing the company to fire two senior managers over a questionable $10.5 million payment made to a consultant who helped the company secure the two blocks and alerted authorities, including the US Department of Justice and the UK’s Serious Fraud Office. The allegations center around the payment of a $10.5 million bribe to François de Combret [ fr ] , a French banking consultant who was a … The civilisation living there at the time were mining red ochre and specularite, a reflective form of iron ore, from a deep tunnel in a hillside some 45,000 years ago. Rio Tinto (RIO +1.3%) says it is accelerating work on potential development of the giant Simandou iron ore project in Guinea. Developing the rich ore under a jungle-covered mountain range presents additional challenges. “There is more activity in Guinea,” said Jacques in an interview on Friday. As some data privacy laws regulate IP addresses and other information collected through the use of cookies as personal data, Rio Tinto’s processing of such personal data needs to comply with its Data Privacy Standard (see Part 1 of this Privacy Policy), and also applicable data privacy laws. Rio Tinto’s Simandou operation in Guinea. Part 1 of this Privacy Policy contains the Rio Tinto Data Privacy Standard, which provides an overview of Rio Tinto’s approach to personal data processing. LES MIRAGES DE SIMANDOU : Rio Tinto à nouveau dans la course, un banquier français à la manœuvre (#2) Rio Tinto and Chinalco, who respectively own 45.05 per cent and 39.95 per cent of Simandou, will continue to work with the Government of Guinea to explore other options to realise value from the world-class Simandou iron ore deposit. Simandou: Rio Tinto riposts to Beny Steinmetz's attack on the Polge de Combret affair Rio Tinto, which is in dispute with Beny Steinmetz over the loss of its mining rights on blocks 1 and 2 on the Simandou iron ore project, has been stung by an attempt by the Israeli businessman to bring up another affair involving alleged bribery on its part for mining rights on blocks 3 and 4 at Simandou. Cookies contain information that is transferred to your computer's hard drive. That includes how the project will be funded, the sources added. The mine shutdown has helped push prices for zinc. Rio Tinto agreed to sell its remaining stake in Simandou to the Chinese resources giant Chinalco last year. However if you choose to provide personal data to Rio Tinto through this website (for example, by sending us an email), we will process that personal data to answer your query and if relevant, to manage our business relationship with you or your company. China’s resource dependence on Guinea has increased in recent years. Rio Tinto once controlled all of the Simandou deposits, but the government took back blocks 1 and 2 in 2008 and sold the concessions to BSG Resources. The commodity has defied predictions for a fall, climbing 19% this year to above $110 a tonne on the back of strong Chinese demand and supply disruptions in Brazil. Jacques will leave the group on 31 March 2021, allowing the company time to find a successor. 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