May 17, 2020

Mining giant Rio Tinto scraps $20 billion iron ore project following price slump

Rio Tinto
Simandou iron ore project
Guinea iron mining
Je
Dale Benton
1 min
Mining giant Rio Tinto  scrapps $20 billion iron ore project following price slump
Rio Tinto has shelved plans for a $20billion Simandou iron ore project in Guinea due to a global oversupply of iron ore, announced the companys new Chie...

Rio Tinto has shelved plans for a $20billion Simandou iron ore project in Guinea due to a global oversupply of iron ore, announced the company’s new Chief Executive Jean-Sebastian Jacques.

The company has been seeking financing for Simandou, despite a $1.1billion write-down in February this year.

Jacques told The Times that the project, which would have included a 650 kilometre railway, is simply inviable at this time.

The country’s minister of mines however, has said in a statement that plans are in place to pursue the project despite Rio Tinto’s decision.

"Despite the challenge of financing the project, we believe that a financing solution will be found with partners who share our long-term perspective," it said.

The project was expected to generate around $7.5 billion in revenue, with an additional $5.6 billion contributed to Guinea’s GDP.

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