Final Stretch for the Project #Simandou. #Kibaro #Guinée #CNRD

 

Press Release

 

Final Stretch for the Simandou Project

Conakry, April 4, 2024 – Under the leadership of H.E. General Mamadi Doumbouya, the Guinean State and its industrial partners consolidated their efforts on April 2, 2024, for the final phases of the development of the Simandou Project, the world’s largest mining project in 2024.

For the Minister of Mines and Geology, Bouna Sylla, there is great pride: “Today, we have successfully signed the final financial closure of this project, making it irreversible. We can only be proud to be Guineans and of the work accomplished by our President, General Mamadi Doumbouya, who is the head of this project that he follows day by day.”

As a reminder, the Simandou Project aims to exploit the largest untapped high-grade iron ore deposit in the world (with an average iron ore content of 65%), a strategic ore for the energy transition.

The project represents an investment of more than USD 15 billion to build a rail infrastructure of over 650 kilometers and port infrastructures by the end of 2025. These assets will be owned for 35 years by the Compagnie du Trans-Guinéen (CTG), within a joint venture between the Guinean State (15%), Rio Tinto SimFer (42.5%), and Winning Consortium Simandou (42.5%).

In line with the vision and initiative launched by the President of the Republic, General Mamadi Doumbouya, in the spring of 2022, the project is being co-developed between the State and industrial partners.

For the implementation of this co-developed project, the State has been able to secure:

  • A free, non-contributory, and non-dilutive 15% stake in CTG;
  • The multi-user and multi-use nature of the infrastructures, with transparent and attractive tariffs;
  • New fiscal regimes ensuring an equitable sharing of future mining revenues, with higher direct fiscal revenues, predictable and diversified;
  • A comprehensive and ambitious regulatory framework adhering to the highest environmental, social, and governance standards;
  • An integrated and ambitious local content plan aimed at creating jobs for Guinean citizens, giving preference to Guinean companies, and facilitating technology transfer.

The signing of about thirty contractual documents on April 2, 2024, follows the acquisition of the main authorizations necessary for the implementation of the project:

  • Ratification by the National Transition Council on February 3, 2024, of three crucial conventions for the development of the project;
  • Approval by the Board of Directors of Rio Tinto on February 20, 2024, particularly regarding its commitment to finance its share of the rail and port infrastructure, co-developed in partnership with WCS, Baowu, and the Republic of Guinea;
  • Obtaining the main regulatory approvals in the People’s Republic of China.

Thus, after two years of tough negotiations, the Simandou Project reaches a “point of no return.”

The President of the Strategic Monitoring Committee for the Simandou Project, also the Minister and Director of the Presidential Cabinet, Mr. Djiba Diakité, stated that “Simandou is no longer a dream but a reality, thanks to the vision, determination, foresight, and leadership of the Head of State, General Mamadi Doumbouya. His great ability to bring together partners with divergent interests to realize the Simandou Project in the interest of all stakeholders, especially Guinea, must be acknowledged. Two years after the signing of the framework agreement on March 25, 2022, here we are today signing the final unconditional financing documents for the Simandou Project. This is a testament to the commitment of all partners, the Strategic Committee, to implementing the vision of the Head of State as well as all the Councils that support Guinea and the industrial partners. There is no doubt today that the project will be delivered according to the schedule by the end of December 2025.

The same spirit was echoed by the partner Baowu, who thanked the President of the Republic for his commitment and leadership throughout the negotiations.

As for the other partners, Rio Tinto – Simfer and Winning Consortium Simandou, they confirmed that this project was an extraordinary opportunity in terms of employment for Guinea and a corridor of prosperity for the country, while committing to complete the work by the end of 2025.

Like the Guineans, the representatives of Rio Tinto – Simfer, Winning Consortium Simandou, and the global steel giant Baowu all praised the leadership of the President of the Republic of Guinea, His Excellency General Mamadi Doumbouya, Supreme Head of the Armed Forces, in making the Simandou Project viable.

The Minister, Director of the Cabinet, and President of the Strategic Committee of Simandou, Mr. Djiba Diakité, reiterated the strategic issues aimed at ensuring the project’s impact on the country’s productivity, particularly the adherence to local content during the construction and operational phases. These issues focus on three key objectives:

  1. Providing employment opportunities for Guineans.
  2. Offering business opportunities to Guinean companies.
  3. Training Guineans to ensure the transfer of skills and technology through Simandou Academy.

Strategic Monitoring Committee of the Simandou Project

 

LINK: Final Stretch for the Project #Simandou. #Kibaro #Guinée #CNRD

 

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