Mining giant Rio Tinto scraps $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 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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Unmanned train to allow Vale to reopen iron ore plant
Brazilian miner Vale SA will be able to resume operations at its Timbopeba iron ore dry processing plant in up to two months thanks to the use of an unmanned train, the company said in a statement this week.
Vale - Timbopeba iro ore plant
With the train, Timbopeba will be able to operate at least at 80% of its capacity of 33,000 tonnes of iron ore “fines” per day, reports Reuters.
Vale was forced to shut down the plant in the Alegria mine complex recently after labor authorities in Minas Gerais state banned activities close to the Xingu dam due to concerns of a risk of collapse.
Vale said access by workers and vehicles continues to be suspended in the flood zone of the dam due to the ban even though it remains at emergency level 2, which means there no imminent risk of rupture.
But some workers are allowed entry under strict security precautions and they will get the unmanned train going once it has been tested, which would take between one and two months, the company said.
The unmanned train will travel automatically along 16 kilometers (10 miles) of track operated by a system that can control the speed and activate the brakes, Vale said.
Vale announces first ore at Voisey’s Bay mine extension
Vale has reached the milestone of first ore production at the Reid Brook deposit at the Voisey’s Bay mine expansion project in Northern Labrador, Canada - recognised as the safest mine in Canada.