China-backed Simandou Iron Ore Project Starts Production in Guinea After Decades of Delays
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The Morebaya Port in Guinea. Photo: CCTV
The Simandou iron ore project in Guinea, the world’s largest untapped reserves of high-grade ore, officially began production on Tuesday, marking a historic milestone that could reshape the global steelmaking market and advance China’s overseas resource ambitions.
The launch ceremony at Morebaya Port attracted high-profile attendees, including Chinese Vice Premier Liu Guozhong, representing President Xi Jinping; Guinean junta leader Mamadi Doumbouya; the presidents of Gabon and Rwanda; and dignitaries from Côte d’Ivoire and Singapore. Executives from Chinese state-owned enterprises and Anglo-Australian mining giant Rio Tinto Group also attended.
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- Guinea’s Simandou iron ore project, with over $20 billion investment, began production and could become the world’s fifth-largest supplier with 120 million tons annually.
- The 4.4 billion-ton deposit could supply 7.5% of global seaborne iron ore and nearly 10% of China’s imports, easing reliance on Australia and Brazil.
- Full production is expected by mid-2028; new railway and port infrastructure were mainly built by Chinese firms.
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Who’s Who
- Rio Tinto Group
- Rio Tinto Group is an Anglo-Australian mining giant. They are a major shareholder (53%) in SimFer, a joint venture developing the southern blocks (3 and 4) of the Simandou iron ore project. Rio Tinto's CEO mentioned in October that the site had stockpiled 1.5 million tonnes of ore by September 2025. They discovered the Simandou deposit in 1997.
- China International Capital Corp.
- China International Capital Corp. (CICC) is mentioned as having forecast that global iron ore prices will drop to around $80 per tonne in the next two to three years. This projection appears in the context of the Simandou project's increasing production.
- China Baowu Steel Group Corp.
- China Baowu Steel Group Corp. is part of a Chinese consortium led by Aluminum Corp. of China Ltd., which holds a 47% stake in SimFer, the joint venture majority-owning Simandou's southern blocks. Baowu also coordinates railway, port, and mine development, and owns a 49% stake in the infrastructure and mining subsidiaries of Winning Consortium Simandou, which operates the northern blocks.
- Aluminum Corp. of China Ltd.
- Aluminum Corp. of China Ltd. is part of a Chinese consortium that holds a 47% ownership stake in SimFer. SimFer is a joint venture that majority-owns the southern blocks (3 and 4) of the Simandou iron ore project. It includes prominent Chinese companies like China Baowu Steel Group Corp. and China Railway Construction Corp. Ltd.
- China Railway Construction Corp. Ltd.
- China Railway Construction Corp. Ltd. is part of a Chinese consortium led by Aluminum Corp. of China Ltd. This consortium holds a 47% stake in SimFer, which majority-owns blocks 3 and 4 of the Simandou iron ore project. It plays a role in the significant investment exceeding $20 billion in the project's mines, railways, and ports.
- Winning International Group
- Winning International Group is a Chinese-backed private firm involved in the Simandou iron ore project in Guinea. It is part of the Winning Consortium Simandou (WCS), which operates the northern blocks (1 and 2) of the deposit. WCS secured the rights to these blocks in 2019, a pivotal moment that helped unblock years of stalemate in the project's development.
- Shandong Weiqiao Pioneering Group Ltd.
- Shandong Weiqiao Pioneering Group Ltd. is a private Chinese company. It's part of the Winning Consortium Simandou (WCS) which operates the northern blocks (1 and 2) of the Simandou iron ore project in Guinea. WCS also includes Winning International Group and Guinean partner UMS.
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What Happened When
- 1997：
- The Simandou iron ore deposit was discovered by Rio Tinto.
- 2019：
- Winning-led WCS consortium secured rights to Simandou's northern blocks (1 and 2), ending years of deadlock.
- By September 2025：
- 1.5 million tonnes of ore were stockpiled at the Simandou site.
- October 2025：
- The first 10,000-ton shipment of Simandou iron ore set out from the mine.
- November 11, 2025：
- Simandou iron ore project officially began production with a launch ceremony at Morebaya Port.
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