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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.
(Reporting by Saliou Samb in Conakry and Barbara Lewis in
London; Writing by Marine Pennetier; Editing by Mark Heinrich
and Alexandra Hudson)
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