LONDON — Rio Tinto has shelved its $20bn Simandou iron ore project in Guinea because of a sustained slump in prices, the company’s new head, Jean-Sebastien Jacques, has confirmed.Rio Tinto declined to comment on his interview in The Times.The world’s second-biggest miner by market capitalisation had been seeking financing for Simandou, even after a $1.1bn writedown on the project in February. Last month the Anglo-Australian company submitted a feasibility study to the Guinean government.But global oversupply of iron ore made the project inviable at this time, Jacques told The Times in an interview.Simandou would have comprised an iron ore mine in central Guinea, a 650km railway and a deepwater port on the West African country’s Atlantic coast.At full production, Rio said the project would generate about $7.5bn in revenue, according to a 2014 report, and add $5.6bn to Guinea’s gross domestic product, doubling the size of its economy and making Guinea the fastest growing state in the ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.