The Guinean government officially launched the first Simandou Mining Summit on November 11, 2026, which was presided over by President Mamadi Doumbouya. The summit brought together national and international investors to discuss the project's progress and future plans. Minister of Mines and Geology Bouna Sylla presented an overview of the project's history and recent developments, emphasizing the government's efforts to relaunch the project. The summit took place over three days on the island of Kassa and in Conakry.
According to Minister Bouna Sylla, the process of relaunching the Simandou project began with defining the Guinean state's expectations, which were signed on November 14, 2022. This step led to the signing of term sheets on December 22, 2022, which included the integration of Chinese steel giant Baowu Steel into the project. Further discussions took place in Shanghai on January 8, 2023, resulting in the "Shanghai agreements" between the state and project partners, including Rio Tinto, Baowu, WCS, and Winning.
The negotiations led to the signing of a shareholders' pact among project partners within the Compagnie du Transguinéen (CTG) on March 8, 2023. This was followed by the project's relaunch at Moribaya on March 18, 2023, by President Mamadi Doumbouya. Minister Sylla highlighted that these efforts allowed the completion of planned infrastructure several weeks ahead of the contractual deadline. On July 27, 2023, an agreement was reached with all partners to consolidate the shareholders' pact.
On August 10, 2023, the Guinean government signed a mining co-development convention, granting the state a 15% non-contributory and non-dilutive stake in the project. The agreement also provided for a shareholders' pact that gives the state a significant role in managing the CTG. Additionally, the convention allowed for the adaptation of mining conventions to the new co-development framework. These developments have enabled the project to move forward with financing and construction.
The project's main components include two mines – blocks 1 and 2 operated by Winning Consortium Simandou, and blocks 3 and 4 operated by Rio Tinto Simfer and Chinalco. A 650-kilometer double-track railway is also being built, which is the only double-track railway in the region. The railway will be open to multiple users, allowing other investors and economic operators to access the infrastructure.
The railway will also be used for passenger transport, connecting Guinea's four natural regions. According to the agreements, one passenger train will run daily in each direction between Beyla and Moribaya, while three freight trains will circulate per week. Minister Sylla emphasized that this is a unique achievement in Africa. The project also includes a mineral port and a commercial port to facilitate imports and exports.
The successful completion of these infrastructure projects is expected to drive economic growth and diversification in Guinea. The project's progress was further confirmed by the approval of Baowu's investment by the Chinese National Development and Reform Commission (NDRC) on December 29, 2023. With the financing and construction phases now underway, the project is set to have a significant impact on Guinea's economy and mining sector.
Key points
- The Simandou mining project includes a 650-kilometer double-track railway, a mineral port, and a commercial port.
- The Guinean government has secured a 15% non-contributory and non-dilutive stake in the project.
- The project is expected to drive economic growth and diversification in Guinea.
