Australia’s Fortescue Metals Group is set to develop Guinea’s iron ore.
The company confirmed that it has submitted a bid to develop two blocks in the giant Simandou iron ore deposit in the West African country.

Fortescue Chief Executive, Elizabeth Gaines in an emailed statement to Reuters, said Fortescue is strongly interested in global opportunities in iron ore

“Consistent with our active business development program, Fortescue is interested in global opportunities in iron ore and other commodities which align with our strategy and expertise,”

However, according to the statement, there are chances that the bid may unsuccessful.

“Following the release of information at a public meeting held in Guinea last week, Fortescue confirms that it is participating in the tender for Simandou Blocks 1 and 2. Details of Fortescue’s bid are confidential and there is no guarantee that any bid submitted will be successful.”

In July of this year, there were emerging speculations that Fortescue may be interested in the deposit after the chairman of the metal group, Andrew Forrest, was pictured on social media among a group of potential investors in a Liberian rail line.

Guinea has struggled for decades to develop the Simandou deposit. The deposit is one of the biggest in the world, containing billions of tonnes of high-grade iron ore. This iron ore is in increasing demand as steel mills try to lower carbon emissions.

Simandou has been mired in protracted legal disputes, while the high cost of infrastructure to transport the ore out of the remote southeastern corner of Guinea has also put a dampener on potential developers’ enthusiasm.

The government of Guinea are insisting that ore from Simandou must be exported through Guinea. This will require the developer to build a 650 km (400 miles) railway to Guinea’s coast as well as a deep-water port, taking the overall cost of developing the deposit to an estimated $23 billion.

Simandou blocks 3 and 4 are owned by a joint venture of Rio Tinto, China Aluminium Corp (Chinalco), and the Guinean government.

Culled from www.reuters.com