18 May Rio Tinto submits feasibility studies for world’s largest mining project
Mining giant Rio Tinto (LSE, ASX:RIO) has submitted feasibility studies for its Simandou iron ore project in Guinea, which is considered the world’s largest iron ore deposit.
The documents outline details about the mine’s development and its related infrastructure. The study is the next step toward bringing the 2 billion tonne deposit on-stream.
The project is valued at more than US$80 billion and it’s one of the most exploitable iron ore fields outside of Australia’s Pilbara region and Brazil’s Vale base.
At 100 per cent production, the project would export up to 100 million tonnes per year, which is a third of Rio’s current total capacity making Rio the world’s number one iron ore miner.
Also at production, the Simandou mine would add almost $6 billion to Guinea’s GDP potentially doubling the country’s economy.
The deal includes a new 650km railway across Guinea to Conakry, the country’s capital in the north and a $7 billion new deep water point.
The actual cost of Simandou has yet to be revealed, but it is estimated at $20 billion.