The British-Australian company Rio Tinto has temporarily halted mining operations and other production processes at the SimFer mine, which is part of the Simandou deposit in Guinea. This decision was made following the death of a contractor employee who was involved in work at the site. The incident occurred on February 14, after which the company announced the start of a detailed investigation into the circumstances of the tragedy.
This is reported by Finway
“A thorough investigation will be initiated. Rio Tinto’s CEO Simon Trott will visit Guinea this week.”
Impact on the Global Iron Ore Market
The first commercial shipment of iron ore from the Simandou deposit was sent to China in December of last year. This event was significant for the global market, as the opening of the Simandou deposit led to a substantial redistribution of supply routes for the steel industry.
According to Rio Tinto’s plans, the company aims to produce between 5 and 6 million tons of iron ore from this deposit by 2026. By 2028, an annual production volume of 60 million tons is planned.
Ownership Structure and Operational Activities
SimFer is a joint venture between the government of Guinea, Rio Tinto, and Chalco Iron Ore Holdings. The venture holds a concession for mining in blocks 3 and 4 in the southern part of the Simandou deposit. At the same time, the Singaporean company Winning Consortium Simandou (WCS) conducts operational activities in blocks 1 and 2, located in the northern part of the deposit.