Rio Tinto submits feasibility study for Guinea's giant iron ore deposit
Reuters
Published May 17, 2016 07:54AM ET
Rio Tinto submits feasibility study for Guinea's giant iron ore deposit
CONAKRY (Reuters) - Anglo-Australian mining giant Rio Tinto (L:RIO) has submitted feasibility studies to the Guinean government for its massive Simandou project, considered the world's biggest untapped iron ore deposit.
The studies are a further step toward bringing onstream a deposit that holds more than 2 billion tonnes. The real cost of the project has yet to be revealed but it is tipped to reach $20 billion.
It could make Guinea one of the world's top iron ore exporters, but analysts caution the world already has a surplus of iron ore for the foreseeable future.
Rio Tinto's joint venture Simfer said in a statement on Monday it had submitted the bankable feasibility study of the mine and the infrastructure of the Simandou South Project on the basis of extensive analysis over the last two years.
Simfer is a joint venture owned by the government of Guinea (7.5 percent), Rio Tinto (46.6 percent), Chalco Iron Ore Holdings - a consortium of Chinese state-owned firms led by the Aluminium Corporation of China (41.3 percent) - and the International Finance Corporation (4.6 percent), part of the World Bank.
When fully operational, Simandou has the potential to double Guinea’s GDP, the project partners have said, while China, the world's largest iron ore consumer provides an obvious market.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.