Name and Location
Simandou mega iron-ore project, Guinea.

Client
Rio Tinto and Chalco, a subsidiary of State-owned Aluminium Corporation, of China, hold a 53% and 47% interest respectively in the joint venture (JV), which translates into a 50.35% and 44.65% interest in the project. The private-sector arm of the World Bank, the International Finance Corporation, holds the remaining 5%.

Guinea retains its options for participation in the project and is expected to take up its first share in the near future.

Project Description
The current plan for the Simandou iron-ore project envisages the construction of a mine with a capacity of 95-million tonnes a year of high-grade iron-ore, a 650 km dedicated industrial railroad passing through 21 km of tunnels traversing Guinea to the coast, a rail-car dumping facility and a four-berth wharf, located 11 km offshore from Matakang. The mine will be the largest integrated mine-and-infrastructure project ever developed in Africa.

Value
It was estimated in 2011 that Simandou needed $9-billion in financing, but the estimated cost in a Rio Tinto engineering study conducted four months ago has increased the project’s capital expenditure to $20-billion.

Duration
The first shipment of ore was initially expected by 2015; however, this has been postponed to 2018.

Latest Developments
Rio has confirmed that first production from the giant Simandou iron-ore deposit is expected to be delayed by at least three years to 2018, as Rio and government continue to finalise details, including the final framework underpinning the project.

Key Contracts and Suppliers
Fluor (construction contractor) and NRW Holdings (earthworks contract).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Chinalco, tel +86 10 8229 8103, fax +86 10 8229 8081 or email info@chinalco.com.cn.
Rio Tinto, Mark Shannon, tel +44 20 7781 1178, fax +44 20 7781 1832 or email mark.shannon@riotinto.com.
Fluor, tel +1 469 398 7000 or fax +1 469 398 7255.
NRW Holdings, tel + 61 8 9358 5510 or fax +61 8 9358 5515.