After nearly thirty years of silence, the Simandou iron mine finally ushered in a moment of qualitative change. This super iron mine, hidden deep in the Kerouane Province of southeastern Guinea, stretches 110 kilometers along the mountain range and has outstanding resource endowments, but has long been in the planning stage. After continuous consultations from multiple parties and cross-border collaborative efforts, with the completion of the heavy-duty trial run of the second series CS zone conveyor belt system, the entire chain of mines, railways, and ports has been connected, and the project has officially bid farewell to the construction phase and entered normal production and operation, adding a stable and high-quality source of raw materials for China's steel industry.

Unique resources

Simandou Iron Mine is the largest iron mine in Africa and one of the few high-grade open-pit hematite mines in the world. The ore bodies in the mining area are concentrated and shallowly buried, with low mining difficulty. The proven reserves are about 4.4 billion tons, with an average total iron grade of over 65%. Against the backdrop of a global decline in iron ore grades, the scarcity value is prominent. The northern block has a resource volume of 1.54 billion tons, an iron grade of 65.28%, and a planned annual production capacity of 60 million tons. It is divided into two series, each undertaking a production capacity of 30 million tons. The total investment of the project exceeds 20 billion US dollars, making it a typical full industry chain overseas resource project.

Steady implementation of equity

China Baowu has been in contact with the Win Alliance since 2020, working together with Rio Tinto, Chinalco, and the government of Guinea to promote development. In June 2024, 49% equity of Northern Mining was acquired. The project was put into operation two months ahead of schedule in November 2025, and the shareholding was increased to 51% in January 2026 to achieve control. Data shows that in the first three quarters of this year, China imported 10.08 million tons of iron ore from Guinea, an increase of nearly 26 times compared to 374500 tons in 2025. Guinea has become one of the top ten source countries for China's iron ore imports. Keywords: China Baowu, Ximangdu iron ore, Engineering Construction

Reshaping the Supply Pattern

China's iron ore imports have been highly concentrated for a long time, with a total import volume of 1.26 billion tons by 2025, with Australia and Brazil accounting for over 80% of the total. According to institutional calculations, the project is expected to produce 20 million tons in 2026 and enter a rapid production period from 2027 to 2028. The total output in 2028 is close to 80 million tons, with the northern and southern regions reaching production in 2029 and 2030 respectively. After the project reaches full production capacity, its output will account for 5% of the global iron ore supply, which is about 10% of China's total iron ore imports by 2025. In the long run, it can divert the supply share of Australia and Pakistan and change the original trade flow. China Baowu proposed to coordinate production capacity and transportation capacity, steadily promote production capacity, clear production and transportation bottlenecks, and promote local development in Guinea while ensuring the supply of Chinese steel raw materials.Editor/Li Xiaohua