Berliner Boersenzeitung - In Simandou mountains, Guinea prepares to cash in on iron ore

EUR -
AED 4.120835
AFN 72.376646
ALL 91.446363
AMD 404.430758
ANG 2.00828
AOA 1030.068071
ARS 1734.359288
AUD 1.62136
AWG 2.022547
AZN 1.912974
BAM 1.961233
BBD 2.259861
BDT 139.356061
BGN 1.961204
BHD 0.423252
BIF 3378.578422
BMD 1.122079
BND 1.436078
BOB 13.334763
BRL 6.181191
BSD 1.122008
BTN 105.309742
BWP 15.416709
BYN 3.359607
BYR 21992.738982
BZD 2.256652
CAD 1.584964
CDF 2570.681235
CHF 0.920132
CLF 0.027649
CLP 1088.168925
CNY 7.487409
CNH 7.483652
COP 3676.0751
CRC 508.2079
CUC 1.122079
CUP 26.928601
CVE 110.665006
CZK 24.345714
DJF 199.415625
DKK 7.476381
DOP 68.053886
DZD 152.620074
EGP 60.46562
ERN 16.831178
ETB 180.876813
FJD 2.526699
FKP 0.840202
GBP 0.834944
GEL 2.911781
GGP 0.840202
GHS 13.111489
GIP 0.840202
GMD 83.033728
GNF 9944.378364
GTQ 8.573714
GYD 235.220589
HKD 8.799957
HNL 30.380262
HRK 7.595361
HTG 147.067424
HUF 362.431919
IDR 20293.912103
ILS 3.54441
IMP 0.840202
INR 105.415967
IQD 1698.826878
IRR 2134513.700104
ISK 137.228052
JEP 0.840202
JMD 178.243793
JOD 0.795585
JPY 177.315894
KES 145.756644
KGS 98.126077
KHR 4583.690588
KMF 495.958991
KPW 1009.870624
KRW 1509.96422
KWD 0.348775
KYD 0.935082
KZT 503.404593
LAK 25252.377599
LBP 100482.130971
LKR 373.071867
LRD 191.090351
LSL 18.581951
LTL 3.313206
LVL 0.678734
LYD 7.214799
MAD 10.948678
MDL 20.224849
MGA 5155.950214
MKD 61.536967
MMK 2355.754922
MNT 4040.791023
MOP 9.062205
MRU 45.163564
MUR 52.858792
MVR 17.275707
MWK 1949.05068
MXN 20.803113
MYR 4.553845
MZN 71.696486
NAD 18.581481
NGN 1511.450807
NIO 41.079237
NOK 10.551522
NPR 168.495788
NZD 1.991925
OMR 0.431396
PAB 1.122109
PEN 3.862754
PGK 5.040344
PHP 70.762196
PKR 310.423176
PLN 4.386822
PYG 7013.429462
QAR 4.087729
RON 5.343004
RSD 117.67346
RUB 92.574778
RWF 1655.065816
SAR 4.219482
SBD 9.031142
SCR 15.780944
SDG 674.960217
SEK 11.000016
SGD 1.435267
SHP 0.840351
SLE 25.751724
SLL 23529.430449
SOS 641.25269
SRD 42.136277
STD 23224.759885
STN 24.994299
SVC 9.8182
SYP 14589.264556
SZL 18.581752
THB 37.488452
TJS 10.300189
TMT 3.927275
TND 3.349961
TOP 2.701695
TRY 56.354259
TTD 7.610082
TWD 36.808219
TZS 2967.895463
UAH 51.116008
UGX 4594.728881
USD 1.122079
UYU 45.245142
UZS 13464.942184
VES 1005.737375
VND 28630.394464
VUV 133.821406
WST 3.128157
XAF 655.957
XAG 0.021033
XAU 0.000271308372
XCD 3.032473
XCG 2.022202
XDR 0.793368
XOF 655.957
XPF 119.331742
YER 265.51185
ZAR 18.382448
ZMK 10100.052768
ZMW 22.805178
ZWL 361.308825
SSP 6446.60178
MXV 2.338638
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

In Simandou mountains, Guinea prepares to cash in on iron ore
In Simandou mountains, Guinea prepares to cash in on iron ore / Photo: PATRICK MEINHARDT - AFP

In Simandou mountains, Guinea prepares to cash in on iron ore

At the foot of the Simandou mountains in southeast Guinea's lush tropical forest, thousands of workers, trucks and excavators are digging up the hills.

Text size:

The verdant paradise is home to a gigantic mining project that promises to propel the poor west African country into the ranks of the world's largest iron exporters -- raising economic hopes but also concern for local populations.

In just a few weeks, Guinea will export its first shipments of iron ore from Simandou, officially launching production decades after the discovery of high-grade iron deposits.

"It wasn't too long ago where this was virgin forest," Chris Aitchison, managing director of SimFer, one of the operators of the site, told AFP, praising what he said had been a "monumental task" at multiple levels.

The project will ideally provide a stream of much-needed revenue for the country and has already resulted in construction of infrastructure that could diversify the economy: industrial partners have spent approximately $20 billion building more than 650 kilometres (400 miles) of railway and a massive port.

- Logistical challenge -

The logistical challenges building the mines were immense but so is the potential windfall from the site, which contains several billion tonnes of high-quality ore.

The price of iron ore, which is used for making steel, has skyrocketed since the early 2000s, fuelled by a boom in Chinese construction.

Ever since Anglo-Australian mining giant Rio Tinto confirmed the Simandou deposits in the mid-1990s, the site has been at the centre of a swirl of legal battles, political turmoil and corruption scandals.

Guinea's junta government, run by strongman Mamady Doumbouya who came to power in a 2021 coup, boasts of having finally pushed the project over the finish line.

Of the four Simandou mining deposits, two are being developed by Chinese-Singaporean group Winning Consortium Simandou (WCS) and the other two by SimFer, a consortium owned by Rio Tinto and Chinese giant Chinalco.

An AFP team travelled to the SimFer site, on the southern end of the Simandou range, a few weeks before the start of production scheduled for November 11.

On the slopes of Mount Oueleba, with an altitude of 1,300 metres (4,265 feet), excavators devoured the mountainside, creating piles of black ore.

Thousands of people work day and night at the gigantic mine site, which is 55 kilometres long.

Although mining activity has already begun, it will take another 2.5 years for infrastructure to be completed and for SimFer to reach its annual production rate of 60 million tonnes.

- Water pollution -

SimFer says it is doing everything possible to limit its environmental impact on the local population in compliance with international standards.

Its efforts include a training centre for students, a seed bank of local flora or gradually rehabilitating mined land.

It also moved its operations to the east side of the mountain to preserve a chimpanzee population, costing it hundreds of millions of dollars, it said.

Despite the initiatives, the mine is impacting local communities: According to a report by the organisation Advocates for Community Alternatives (ACA), construction activities have caused soil and water pollution near the mines, along the railway and near the port.

Sediment runoff from construction was the main form of pollution observed.

Water pollution is "a big issue for us", Aitchison said, adding that the company was spending "a lot of time building sediment traps".

Ore will be transported on a 36-hour journey from Simandou to the Morebaya port complex at the mouth of a river, where SimFer and Winning will export 120 million tonnes of ore per year when production reaches its peak.

- Community impacts -

Among the estuary area's many palm trees sits SimFer's port terminal, where thousands of employees work ahead of its scheduled completion in September 2026.

A few kilometres away, the village of Touguiyire stands in contrast to the economic prosperity of the port.

A pirogue canoe returned from fishing and its haul was meagre. A few women sorted through the small fish on the pier while men mended their nets.

Since the arrival of dredging boats for the port, the fish have disappeared and with them an entire way of life, locals say.

"Before, the pirogues would return with 10 buckets of fish," Aissata Cisse, a 54-year-old vendor said. "Now they come back with only two."

Fishermen must now go farther out into open waters in pirogues that are not always seaworthy.

According to local representative Bissiry Camara, three men recently died while fishing on the high seas.

The small village once had about 60 pirogues and its approximately 3,000 inhabitants relied on a bountiful catch. Now only three pirogues are operational, according to fishermen.

"The lives of the fishermen are completely threatened," said Alkaly Bangoura, a member of a monitoring committee for the Simandou project in the Forecariah prefecture where Touguiyire is located.

In an attempt to compensate, Winning and SimFer have distributed food as well as equipment for fishing further out, such as motors.

Due to a lack of income, however, the fishermen can no longer maintain their pirogues and remain stranded on shore.

"We hoped for a better future with Simandou, but now it's disillusionment", Bangoura said.

- Opacity -

Meanwhile, authorities vaunt the mine as a major boost for the economy -- the country's economic development plan is even called Simandou 2040.

Billboards in the capital Conakry promoting Simandou were used widely by the junta during its recent campaign promoting a new constitution that would allow its leader to stay in power.

The state, which holds a 15-percent stake in the railway line, is counting on it to open up entire areas and believes it should help develop agriculture in remote but highly fertile regions.

"A new economy will emerge," Prime Minister Amadou Oury Bah told AFP during an interview, pointing to the train's ability to diversify the country's output.

Despite Guinea's considerable natural resources, including vast reserves of bauxite used to make aluminium, its economy struggles and the population benefits very little from the mining industry.

"There have already been other mining projects that have raised a lot of hope... but with very limited results," said Oumar Totiya Barry, executive director of the independent organisation Guinean Observatory of Mines and Metals.

According to him, the project's ability to open up the country is doubtful. "When you look at the Simandou railway's route, it passes very far from all of Guinea's major cities," he said.

One major unknown is the content of the 2022 agreement negotiated between the state and the companies, despite the Guinean mining code's requirement to publish such contracts.

Traditionally, miners receive tax breaks in exchange for their large investments, but neither the government, SimFer nor Winning would comment when contacted by AFP.

Prime Minister Bah, however, is promising transparency.

Once production begins "there is no reason why things should not be made available to the public", he said.

(H.Schneide--BBZ)