Chinese Shippers Spend Billions on New Fleet for Guinea’s Giant Simandou Iron Ore Mine

The inaugural shipment of iron ore from Guinea’s colossal Simandou project has embarked on its 45-day voyage to China, marking the start of operations at what is poised to become the world’s largest new mine. The milestone is also fueling a surge in shipbuilding orders by Chinese companies eager to secure freight capacity.

The ore, mined since mid-October, is currently being loaded via barges onto a 200,000-ton bulk carrier off the coast of Guinea. The Simandou development — jointly operated by Rio Tinto, Winning Consortium Simandou (WCS), China Baowu Steel Group, Aluminum Corp. of China, and the Government of Guinea — includes a mine, a newly built railway, and a port. It represents a total investment of more than $20 billion, according to a statement by China Baowu on Nov. 11, the day production officially began.

Heralded as a “game-changer” for global iron ore markets, Simandou is expected to reshape global supply patterns. The deposit holds an estimated 4.4 billion tons of high-grade ore with an average iron content of over 65%. Once fully operational, the mine could supply up to 120 million tons annually, positioning it as the world’s fifth-largest producer and contributing around 7.5% of global seaborne iron ore trade — close to 10% of China’s 2024 import volumes.