Bulk loads of iron ore shipped from Guinea around South Africa to markets in China and Russia are set to increase following a public-private sector joint venture (JV) arrangement in Conakry.
Although finer details of the JV are still pending, the deal between mining multinational Rio Tinto, Singaporean collective Winning Consortium Simandou (WCS), and the military junta of Mamady Doumbouya, includes the construction of a 600-kilometre railway line from one of the world’s most concentrated iron ore deposit sites.
It will run from the Simandou mining area in the south-east of Conakry to an undisclosed port south of the capital.
Although it’s been reported that the line will link up with a port some 80kms south of Conakry, it is believed that the existing agricultural export port of Benti on the Mélikhouré River is a strong consideration for outflows from Simandou.
Mining of iron ore at Simandou, which at 65% represents the world’s most densely concentrated deposits of the mineral, has been on the cards for some time, but work on the mine was halted by last September’s military ousting of President Alpha Conde.
According to Reuters, most of the 15 000 employees of WCS will remain on forced leave until JV agreements have been finalised and work can continue.
The shareholding involves an even split of 42.5% each for Rio Tinto and WCS, with the public partner La Compagnie du TransGuinéen given 15%, thereby freeing up Doumbouya’s junta from any capital investment the project.
"The Republic of Guinea reassures the partners, and the world, of its firm will to develop the Simandou project in the best interests of the people of Guinea, and all partners," said Djiba Diakité, chairman of the government's committee on Simandou.
At optimum output, Simandou outflows could result in up to 68 capesize voyages around Cape Agulhas annually.
The development underscores the faith WCS – which is made up of Winning International Group, China Hongqiao, and UMS Guinea – has placed in expanding its dry bulk fleet in recent years.
