Guinea: Doumbouya forces Rio Tinto and WCS to compromise on huge Simandou iron ore mine

By Maureen Songne
Posted on Monday, 1 August 2022 15:56

Le gisement de fer du Simandou is one of the biggest iron ore deposits in the world. © Rio Tinto

Is this the end of tensions between Guinea's interim leader Mamadi Doumbouya and the partners on the Simandou iron ore project?

In a statement released on 27 July, the Guinean government, Winning Consortium Simandou (WCS) and Rio Tinto Simfer announced the formation of the joint venture Compagnie du TransGuineen (CTG). In accordance with the framework agreement signed on 25 March, this joint venture aims to advance plans to co-develop the rail and port infrastructure of the Simandou iron ore project.

The next step for the partners is to work on the shareholder agreement, finalise cost and financing estimates, and obtain all necessary approvals to move the project forward. Ownership of the CTG will be shared between Rio Tinto’s subsidiary, Simfer Jersey Ltd, and WCS, each receiving a 42.5% share of the capital, with Conakry taking a 15% free equity stake.