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(Ecofin Agency) – The Simandou iron ore deposit in Guinea is set to start production by the end of 2025, pending the completion of the railroad and port construction. However, operations at the Morébaya port site have been suspended since October 26 following the death of an employee during construction.
In a statement released on Monday, October 28, Rio Tinto announced this decision following the incident. “Our deepest condolences go to the family, friends, colleagues, and communities affected by this tragedy […] we are working with our partners and relevant authorities to conduct a thorough investigation,” said Jacob Stausholm, CEO of Rio Tinto.
It is not yet known how long operations will be suspended or how the suspension could impact Simandou’s development. The Morébaya mineral port, developed with Winning Consortium Simandou, is crucial for starting iron ore production at Simandou by late 2025.
The infrastructure investment for Simandou, including a 600+ km railroad for transporting iron ore to the port, is estimated at $15 billion, making it one of the largest infrastructure projects globally. According to the IMF, beginning mining operations in 2025 could boost Guinea’s GDP by 26% by 2030 compared to a scenario without the mine.
The mining sector makes up 21% of Guinea’s GDP and over 80% of its exports as of 2022.
Emiliano Tossou
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