Guinea Launches Tender For Simandou Blocks 1 and 2

 Guinea has put Simandou blocks 1 and 2 up for tender as it seeks to attract a developer for the high grade iron ore deposit.

The project has been hit over the years as a result of falling commodity prices and various legal disputes regarding the concession. The government’s insistence that the ore mined must be exported through Guinean ports has presented another key challenge, given that the blocks are 650 kilometres from the coast requiring a vast infrastructure investment. It has ruled out an alternative option through Liberia, which already has a route for export via rail in place.

Simandou’s blocks 3 and 4 continue to be held by Rio Tinto, which has been looking for a buyer for some time.

Companies have until August 2 to express their interest, with the government hoping to complete the process by September.