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Rio Tinto PLC on Wednesday said production at its Simandou mine is expected to begin in 2025, as it pledged to spend $6.2 billion out of a total $11.6 billion of initial capital funding.
The London-based mining company said production at the site will be ramped up over a 30-month period to a total annual capacity of 60 million tonnes per year.
The Rio Tinto share equates to 27 million tonnes per year.
Simandou, located in Guinea, is to be operated as the Simfer joint venture, which is owned by Rio Tinto, Chalco Iron Ore Holdings and the Guinean government
It said it has converted an estimated 1.5 billion tonnes, which supports a 26-year mine life aith an average grade of 65.3%% iron. At December 31 2022, the firm said the mine concession held an estimated 2.8 billion tonnes.
Rio Tinto Copper Chief Executive Bold Baatar said: ‘We are continuing to work closely with the Government of Guinea, Chinalco, Baowu and WCS towards full sanction of this world class project by all partners.
‘Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto’s portfolio for the decarbonisation of the steel industry, along with trans-Guinean rail and port infrastructure that can make a significant contribution to the country’s economic development.’
Rio Tinto shares rose 1.9% to 5,521.00 pence each on Wednesday morning in London.
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