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 50.35% and 44.65% interest respectively in the Simandou project. The remaining five per cent is held by the International Finance Corporation.
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 Simandou project comprises three core elements – a mine, a railway and a port – as well as associated infrastructure.

There will be an openpit iron-ore operation in the Simandou range, in south-eastern Guinea, with an expected peak production of between 95-million and 100-million tonnes a year.

The railway will be about 650 km long to transport the iron-ore from the mine to the Guinean coast.

The port will be located south of Conakry, in the Morebaya river.

Associated developments to provide utilities and supporting infrastructure for the project include construction facilities, access to materials, power generation, water, access roads and accommodation.

Construction of the project will be undertaken in two stages.

The first stage will develop the southern Ouelaba mine site, which will include the construction of the railway and port to a capacity of about 50-million tonnes a year.

The second stage will bring the northern Pic de Fon mine site on line and expand the capacity of rail and port facilities, increasing production to between 95-million and 100-million tonnes a year.

The mine will be the largest integrated mine-and-infrastructure project ever developed in Africa.

Value
A Rio Tinto engineering study conducted on the project estimates capital expenditure at about $18.3-billion.

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

Latest Developments
Rio CEO Sam Walsh indicated in an interview with the Wall Street Journal in November this year that an investment framework, one of the major hurdles in developing the Simandou mine, rail and port project, was close to completion.

An investment framework on the project is expected to be approved by the end of the first quarter of 2014 by Guinea's parliament. However, a 2013 target, floated in July when a nonbinding agreement was signed that delayed first ore by three years until 2018, may be missed.

Once an investment framework is agreed upon, the other major hurdle will be appointing a company, most likely Chinese, to develop the 650 km railway and port.

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.