CONAKRY (Reuters) - Anglo-Australian mining giant Rio Tinto (L:RIO)
has submitted feasibility studies to the Guinean government for its
massive Simandou project, considered the world's biggest untapped iron
ore deposit.
The studies are a further step toward bringing
onstream a deposit that holds more than 2 billion tonnes. The real cost
of the project has yet to be revealed but it is tipped to reach $20
billion.
It could make Guinea one of the world's top iron ore
exporters, but analysts caution the world already has a surplus of iron
ore for the foreseeable future.
Rio Tinto's joint venture Simfer
said in a statement on Monday it had submitted the bankable feasibility
study of the mine and the infrastructure of the Simandou South Project
on the basis of extensive analysis over the last two years.
Simfer is a joint venture owned by the government of Guinea (7.5 percent), Rio Tinto (46.6 percent), Chalco Iron Ore
Holdings - a consortium of Chinese state-owned firms led by the
Aluminium Corporation of China (41.3 percent) - and the International
Finance Corporation (4.6 percent), part of the World Bank.
When
fully operational, Simandou has the potential to double Guinea’s GDP,
the project partners have said, while China, the world's largest iron
ore consumer provides an obvious market.
