Rio Tinto puts $9.5b price tag on Simandou mine

The news: Mining giant Rio Tinto has estimated its initial share of capital expenditure to build infrastructure for Guinea’s Simandou iron ore project at $US6.2 billion ($9.5 billion).

The numbers: Rio also said that first production from the Simandou mine, the world's largest untapped high-grade iron ore deposit, is expected in 2025. Production is planned to ramp up over 30 months to an annualised capacity of 60 million tonnes per year, with Rio's share equalling an annual 27 million tonnes.

The context: The Anglo-Australian miner owns two of four Simandou mining blocks as part of its Simfer joint venture with China's Chalco Iron Ore Holdings and the government of Guinea.

What they said: Chief executive for Rio Tinto Copper said: “Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto’s portfolio for the decarbonisation of the steel industry, along with trans-Guinean rail and port infrastructure that can make a significant contribution to the country’s economic development.”