The Anglo-Australian Rio Tinto Simfer and Winning Consortium Simandou were questioned on Friday June 17 by the President of the Transition in Guinea, Colonel Mamady Doumbouya, on the delay already recorded in the implementation of an agreement that the two giants signed last March with the Guinean State, relating to the operation of the Simandou site (south-east).
“We note a discrepancy between your vision of the implementation of the terms of the framework agreement, and our expectations. This situation is not only regrettable, but also unacceptable for the Guinean State,” lamented the head of the ruling junta.
The three-party deal is worth $15 billion and is for 35 years. It provides for the establishment of a railway of about 670 km to connect the mining corridor to an ore port on the Guinean coast south of Conakry the capital. Work for the railway and the deep-water port is expected to be completed by the end of 2024, while first commercial production is expected no later than March 31, 2025.
Colonel Doumbouy gave the two companies two weeks to set up a joint venture to put the terms of the agreement into effect. “To move forward effectively, I expect the creation of the joint venture within fourteen days,” he said.
Simandou is one of the largest iron deposits in the world. The military junta intends to effectively exploit the deposit for the needs of the country’s development.
By OMA Newsletter N° 749 of 20/06/2022
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
