Fortescue Metals Group has presented a bid to be the developer of Blocks 1 and 2 of the giant Simandou iron ore project in Guinea, West Africa. The Simandou project is one of the world's biggest undiscovered high-grade iron ore sites, with in excess of two billion tons of assets.
Fortescue CEO Elizabeth Gaines stated, "After the arrival of data at an open gathering held in Guinea a week ago, Fortescue affirms that it is taking an interest in the tender for Simandou Blocks 1 and 2." The iron ore venture conceivably has a mine life more than 40 years and could make Guinea one of the world's top iron ore exporters. "Steady with our dynamic business development program, Fortescue is keen on worldwide open doors in iron ore and different items which line up with our strategy and expertise," Gaines said. Fortescue is joined by Guinea's greatest bauxite exporter, SMB-Winning, as the last two organizations in the running for the rights to build up the two squares, as per sources. Guinea has attempted to build up the Simandou store as the site has been associated with legitimate and political questions for over 10 years. Another concern is the significant expense of infrastructure to transport the ore out of the remote south-eastern corner of Guinea.
The Guinean Government necessitates that iron ore mined must be sent out through Guinea, requiring a 650-kilometer railroad to Guinea's coast just as a profound water port. The expense of building up the deposit is assessed at $23 billion. Simandou Blocks 3 and 4 are possessed by a joint endeavor of Rio Tinto, China Aluminum Corp (Chinalco) and the Guinean Government. Rio Tinto holds a 45 percent stake in squares three and four of Simandou, while Chinese state-controlled Chinalco and the Guinean Government claim 40 percent and 15 percent, individually.