Project Details and Actors. [15], In 2014, Vale filed a claim against BSGR at the London Court of International Arbitration to recover an upfront payment to BSGR and money it invested in Guinea. Fer de Simandou : prescription pour la plainte de Rio Tinto contre Vale et BSGR, Novembre 2015 [click to view] Guinée : toute la chronologie de 20 années d’échecs sur Simandou, le plus grand gisement de fer inexploité au monde, Octobre 2017 [click to view] August 30, 2013 News s11_admin Malavika Santhebennur. [26][27] Investigations into the Group's activity in Simandou were also launched by Australian authorities[28] and the US Department of Justice. [16] In May 2020, BSGR filed discovery request documents at the court in New York based on transcripts of conversations with former Vale executives that were obtained by the Black Cube private intelligence company. Simandou represents one of the largest iron ore reserves in Guinea and in the world, having estimated reserves of 2.4 billion tonnes of ore grading 65% iron metal. Simandou is a 110-kilometre-long (68 mi) range of hills located in the Nzérékoré and Kankan regions of southeastern Guinea, in the country's mountainous, forested Guinée Forestière region. Blocks 3 and 4 are owned by Rio Tinto , Chinalco and Guinea's government. (Bloomberg) -- China is close to giving the go-ahead for some of its biggest state-owned companies to develop the giant Simandou iron ore mine in Guinea, potentially paving the way for the project to be built after years of legal wrangling. [10] However, after Vale had paid in $500 million, the government of Guinea led by President Alpha Conde launched an investigation into the legality of BSGR's license. billion from around $14 billion. Simandou has more than 2 billion tonnes of high-grade ore. The consortium - which includes Singapore's Winning The mine is expected to produce up to 95 MTpa of ore.[31], "Rio Tinto - Iron ore resources, Simandou, Republic of Guinea, Rio Tinto News Announcement RNS Number 4634V", "Rio says reaches accord with Guinea over Simandou", "Joint venture for Simandou Guinea,Iron ore,Simandou project,Steel,Steel, BHP Billiton,Chinalco,Rio Tinto,World Bank, Agreement,Joint ventures,Port developments,Rail,", "Rio Tinto, Chinalco, agree to develop Guinea iron ore field", "U.S. arrests man linked to Israeli tycoon in Africa graft probe", "FBI arrest agent over bribery cover up claim in battle over $10bn mountain", "Vale may settle Simandou lawsuit | MINING.com", "Guinea: BSGR seeks arbitration in Simandou dispute | African Energy", "Rio sues Vale and Steinmetz's BSG over Guinea mine", "Steinmetz, BSG Resources Win Dismissal of Rio Tinto Lawsuit", "Mining Billionaire Gets Help From Ex-Spies in Bitter Legal Fight", "Mining billionaire gets help from ex-spies in bitter legal fight", "Mining Billionaire Ends Bitter Guinea Dispute After Months of Secret Negotiations", "Israeli Billionaire Steinmetz's BSGR Settles Guinea Row, Looks to Zogota Iron Ore", "Beny Steinmetz settles dispute with Guinea over iron ore project", "Rio Tinto Offered Bribe for Mine, Ex-Guinea Minister Says", "Rio Tinto set to quit Guinea iron ore project with sale to Chinalco", "Audio recordings drag Guinea president into mine bribery scandal - France 24", "SFO says it is investigating Rio Tinto over Guinea operations", "UK's SFO says opens investigation into Rio Tinto Group", "UK Serious Fraud Office probes Rio Tinto Guinea project", "UK Serious Fraud Office joins Rio Tinto 'corruption' inquiry", "GUINEA: SIMANDOU PROJECT GAINS MOMENTUM", https://en.wikipedia.org/w/index.php?title=Simandou_mine&oldid=991502024, Creative Commons Attribution-ShareAlike License, This page was last edited on 30 November 2020, at 11:49. Simandou has more than 2 billion tonnes of high-grade ore. The court decided in favor of Vale and awarded it $2 billion. Simandou is a montains range 100 km long. [11] In April 2014 the Guinean government cancelled BSGR's mining rights in Simandou, and in May 2014 BSGR sought arbitration over the government's decision to expropriate the company's mining rights. "We finally have hope of realising this old dream for the [24] President Condé denied knowing about the bribe. La Guinée cède les blocs I et II du fer de Simandou à la Société minière de Boké (SMB) et tourne définitivement la page Beny Steinmetz après cinq ans de litige clôturé par la condamnation de l’homme d’affaires franco-israélien en août. This is a significant milestone and has been delivered as per the agreed target date. It is to be the largest iron-ore mine and infrastructure project in Africa. [4], Despite assurances, the mine is still not operational. added that the total cost of the project had been revised to $16 Rio Tinto Limited plans to build a 650 km railway to transport iron ore from the mine to the coast, near Matakong, for export. The non-binding heads of agreement, originally signed on 28 October 2016, for Chinalco to acquire Rio Tinto's entire interest in the Simandou iron ore project in Guinea has lapsed. Iron Mine on Simandou Mountain Range, Mine de Fer, Guinée . [17] BSGR claims that the documents prove that Vale was aware of potential problems with how the rights to develop Simandou had been obtained, but chose to ignore them and proceeded to buy 51% of the iron-ore licenses. [19] The agreement made BSGR surrender its rights to Simandou but allowed it to maintain an interest in the smaller Zogota deposit while giving Mick Davis, the head of Niron Metals, permission to develop it.[20][21]. Australian mining giant Rio Tinto has announced that it will develop Africa's largest mining project, in Guinea after lengthy negotiations. The second component is the construction of a railway line, which will be approximately 650km long, to transport the extracted ore. During the same month the company agreed to sell their remaining 46.6% stake in the mine to Aluminum Corporation of China Ltd. (Chinalco) for $1.3 billion. At both banded iron formations (metamorphosed to staurolite-grade itabirites) have been enriched to form haematite and haematite-goethite mineralisations. The first component is the development of the mine, which is expected to produce 100 million tonnes of iron ore per year. Source of Conflict. reiterating plans to begin production by 2025. (UMS), Chinese aluminium producer Shandong Weiqiao and Guinea's At the southern end of the range the site of a large iron ore deposit is currently being developed. Simandou, the largest known deposit of its kind. The third component is the construction of a new port and associated infrastructure in the Forécariah prefecture to … Shipping, Guinean mining logistics firm United Mining Supply government - won a tender last year to develop blocks 1 and 2 of Since then, the Ashapura company operating on the site, Société Guinéenne des Mines de Fer, has been shipping around 175,000 tonnes of ore per month from the port of Konta. "We are already on the ground and we have done a lot of work [7], Cilins pleaded guilty in March 2014 and was sentenced to 2 years in jail. Images : View on peaks from the Pic de Fon area (25.600 ha) Source. Simandou through a separate company, said last month that it Guinea's government approved on Thursday a basic agreement for the development of its giant Simandou iron ore project by a consortium representing Chinese, French and Singaporean interests, the mines minister told Reuters. [9], Back in 2010, BSGR sold 51% of their stake to Vale (NYSE:VALE) for $2.5 billion. The Simandou mine is a large iron mine located in the Simandou mountain range of southern Guinea 's Nzérékoré Region. plans to finance half of the construction of the first phase of Simandou 1 Zogota iron ore mine 12 September 2018 Niron Metals is hoping to commence production at Zogota in 2020 and would produce 2 Mtpa of both lump and fines. China-backed consortium SMB-Winning, which is developing Simandou through a separate company, said last month that it plans to finance half of the construction of the first phase of the railway with equity and half of it with credit. country," Mines Minister Abdoulaye Magassouba told Reuters. In 2008 Rio Tinto Group, the licensee of the Simandou concession, was ordered by the Guinean government to relinquish the northern half (Blocks 1 and 2, east and southeast of Kérouané) to BSG Resources, a company controlled by the Israeli diamond investor Beny Steinmetz. Rio Tinto has filed a legal complaint in the US against Vale and other groups over the loss of its Simandou mining concessions. Analytical Charts - Jim However, according to recordings presented by FRANCE 24,[25] Guinean authorities knew about the Simandou briberies by Rio Tinto. Alan Davies said, "I take great pleasure being here today to deliver the first draft of the development plan for the Simandou mine to the Government of Guinea. Source. Zotov holds an active production licence for a bauxite mine in coastal Guinea through his mining company Eurasian Resources (EAR). He the railway with equity and half of it with credit. [6] Cilin's detention followed covert FBI recordings of a series of meetings that allegedly showed he had plotted the destruction of documents which it is claimed could have shown the Simandou exploitation rights were acquired following the payment of millions of dollars in bribes to Guinea government officials. Simandou represents one of the largest iron ore reserves in Guinea and in the world, having estimated reserves of 2.4 billion tonnes of ore grading 65% iron metal. As part of the winning bid, the consortium agreed to build a SMB-Winning Consortium comprises Singapore-based shipping company Winning International Group, Chinese aluminum producer China Hongqiao Group, Guinea-based integrated logistics company UMS and … Wyckoff, Gold and silver are mixed heading into the EU session. The Simandou mine is a large iron mine located in the Simandou mountain range of southern Guinea, Simandou represents one of the largest iron ore reserves in Guinea and in the world, having estimated reserves of 2.4 billion tonnes of ore grading 65% iron meta. The potential yield of the two deposits is estimated at 2.25 billion tonnes of high-grade iron ore.[2], The Simandou mine has known much turmoil and many mining rights disputes over the years. [1], The Pic de Fon and Ouéléba iron deposits are located approximately 4 km from one another at the southern end of the Simandou Range, approximately 550 km ESE of the capital, Conakry. Both deposits are approximately 7.5 km in length and up to 1 km wide. Platinum price was 'suppressed' in 2020 by futures markets - World Platinum Investment Council, Why Friday was the end of an era in mining, The Metals, Money, and Markets Weekly by Mickey Fulp - December 4, 2020, Gold still bullish within macro bearish correction 12/4/20, CPM Group - politics and gold, the lessons of 1933 - Jeffrey Christian. [30] Much of the Simandou iron ore is expected to be shipped to China for steel production. [12] During the same month Rio Tinto filed suit against Vale and BSGR over the validity of their mining license. 650-km (400 mile) railway and deepwater port. The Simandou mine is a large iron mine located in the Simandou mountain range of southern Guinea's Nzérékoré Region. Wyckoff, Where Are the Stops - Jim In April 2011, AMECO was awarded a contract to work with Odebrecht and The investigation aimed to establish whether potential illegal payments made to obtain mining concessions in Guinea had been transferred to the United States in breach of the Foreign Corrupt Practices Act, which allows U.S. officials to pursue bribery cases abroad. Why hasn't platinum price rallied despite a major deficit? It said last month Blocks 3 and 4 are owned by Rio Tinto, Chinalco and Guinea's government. signed the development agreement. China-backed consortium SMB-Winning, which is developing Rio Tinto Simandou Aerial view of the Simandou iron ore project . African nation of Guinea, the Simandou iron ore mine is projected to provide nearly 100 million tons of iron ore per year, upon completion in 2015. In 2016, former Guinean mining minister Mahmoud Thiam[22] accused the head of Rio Tinto's Guinea operation department, Steven Din, of offering him a bribe in 2010 with the aim of regaining Rio Tinto's control over half of the undeveloped Simandou project. Guinea's government approved on Thursday a basic agreement for a multi-national consortium to build a railroad and deepwater port to export minerals from the giant Simandou … Blocks 3 and 4 are owned by Rio Tinto , Chinalco and Guinea's government. This could undermine Vale’s claims to compensation. that it aims to bring the two blocks into production by 2025 I am also very honoured to have attended His Excellency Alpha Condé’s inauguration as President". ... Simandou’s iron ore production could reach between 95 million and 100 million tonnes a year. Simandou North and Simandou South ownership details The two northern blocks (blocks 1 and 2) are owned by SMB-Winning Consortium (90%) and the Government of Guinea (10%). BSGR denied any wrongdoing[13] and the lawsuit was dismissed in 2015 in the US. Simandou mega-mine to dint iron ore market Alan Kohler speaks with Equities Strategist at Mason Stevens Asset Management, Rod Skellet, about the impact the Simandou Project in Guinea could have on BHP and the global iron ore market and his work on food security tensions in the South China Sea. [29], Mining operations were expected to start before the end of 2015. [18], In February 2019, BSGR came to an agreement with Guinea to withdraw the mutual corruption allegations as well as the arbitration case. Rio’s Simandou mine faces 3-year delay. In November 2016, Rio Tinto admitted to paying $10.5 million to François de Combret [fr], a close adviser of President Alpha Condé,[23] in 2011 to obtain rights on Simandou. Selon les informations rapportées par Bloomberg, les autorités chinoises, impliquées dans le projet à travers les compagnies Chinalco et SMB, discutent actuellement du financement et du chronogramme des travaux. Basic Data. Simandou has more than 2 billion tonnes of high-grade ore. Simandou 1 Zogota iron ore mine Report summary BSGR has relinquished its rights to Simandou Blocks 1 and 2 but Niron Metals, a company associated with the owners of BSGR, has negotiated the right to develop the smaller Zogota deposit which lies in Guinea's south. Iron Mine on Simandou Mountain Range, Mine de Fer, Guinée Description:. Ashapura is also developing the Houda bauxite mine in Guinea, where it expects production to get under way in late 2020 or early 2021 (Africa Intelligence, 05/05/20). The mines ministry announced in a statement that it had [14] In November 2016, BSGR filed suit against Rio Tinto for compensation. [8] No charges were brought against Steinmetz or BSGR. China-backed consortium SMB-Winning, which is developing Simandou through a separate company, said last month that it plans to finance half of the construction of the first phase of the railway with equity and half of it with credit. since the signature of the basic convention in June 2019," Fadi Wazni, an official from the consortium, said on Thursday, after years of delays caused by legal disputes and high costs. The mine development principally involves three components. Simandou es una popular cadena montañosa que consta de grandes minas de hierro, en la zona sureste de Guinea. [3], In March 2010 Rio Tinto and its biggest shareholder, Aluminum Corporation of China Limited (Chinalco), signed a preliminary agreement to develop Rio Tinto's iron ore project. [4][5], On April 14, 2013, Frederic Cilins, an agent for Beny Steinmetz's company, was arrested in Jacksonville, Florida as a result of an FBI investigation that began in January 2013. For years, it seemed the super-rich ore under a jungle-covered mountain range might never be dug up. En Guinée, la mine de fer Simandou pourrait bientôt entrer en construction. Engineering News Online provides real time news reportage through originated written,video and audio material. Even if Rogers acts only as a secretary for these companies, his active interest in the Guinean mining sector leads one to question his law firm’s impartiality in the Simandou tendering process. In 2017, the Serious Fraud Office (SFO), Britain's anti-fraud regulator, launched an official investigation into Rio Tinto's business and mining practices in Guinea.