Guinean President Resumes Simandou Iron Mine Project Construction

The Simandou range is thought to contain one of the largest untapped reserves of iron ore, estimated at more than 2.4 billion tons with iron content exceeding 65.5 percent. After finishing negotiations on the issue of financing – which is why the project had been suspended – the country is almost ready to harvest the riches of the mountains.

The government of Guinea and its partners have resumed work on building the Simandou infrastructure and mine.

Guinea's leader Mamady Doumbouya officially announced the resumption of works at a ceremony in Moribaya, about 100 kilometers south of the capital city Conakry.

"My ambition is for the Simandou project to serve as a real catalyst for Guinea's economic development, and allow the country to become a major player in the world iron ore market," Doumbouya said in a speech.

The Simandou project, which is estimated to cost $15 billion, includes setting up a railway, port, and mine at the world's biggest untapped reserve of high-grade iron ore.

Simandou's owners are multinational Anglo-Australian mining group Rio Tinto, the Guinean government, and the Winning Consortium Simandou – a collection of Chinese and Singaporean companies. Recently, China's biggest iron and steel producer, Baowu, was allowed to join the project to accelerate the financing.

The project was suspended in March last year because of disagreements over how the project would be financed and how much of the revenues would go to the government.