The Chinese company Baowu Resources, the world’s largest steel producer, has strengthened its position in one of the largest undeveloped iron ore deposits — Simandou in Guinea. After increasing its stake in the Winning Consortium Simandou from 49% to 51%, Baowu Resources gained control over the operator of blocks 1 and 2 of this strategic project.
This is reported by Finway
Strategic Strengthening of Positions in Guinea’s Mining Sector
As a result of the agreement, the parent company, registered in Singapore, along with its Guinean subsidiary, has been renamed Baowu Winning Consortium Simandou (BWCS). This decision was approved by the Guinean authorities on May 30, 2024, and the official completion of the agreement took place on January 30, 2026.
To date, BWCS owns 85% of the shares of the Guinean operating company for blocks 1 and 2, allowing Beijing to significantly influence the development of Simandou in a country also known for its bauxite and other mineral export volumes.
Infrastructure Development and Export Prospects
Meanwhile, in the southern blocks 3 and 4, Chinese state companies are participating in a joint venture led by Chinalco together with mining giant Rio Tinto and the state of Guinea within the Simfer partnership.
Simfer, in collaboration with BWCS, has developed integrated railway and port infrastructure for Simandou. Iron ore shipments under this project began in November after nearly thirty years of periodic delays, regulatory disputes, and infrastructure challenges.
Baowu stated that the agreement confirms its long-term industrial and strategic commitments to “one of the world’s most important integrated mining-infrastructure projects,” adding that the company will focus on “the project’s competitiveness, local component development, and adherence to internationally recognized ESG standards.”
With full capacity, the two mining clusters of Simandou will be able to export up to 120 million tons of iron ore annually through the new railway and Atlantic port. This will make Guinea one of the most important raw material suppliers for the metallurgical industry, alongside Australia and Brazil.