Rio Tinto shares lift as Simandou mine commences operations
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The news: Rio Tinto shares lifted after the mining giant marked the start of operations at its massive Simandou iron ore mine in Guinea overnight.
The numbers: At 12:07am AEDT, shares in Rio Tinto had lifted 2.4% to $132.67, out pacing the broader materials sector which was up about 1.1%.
The context: The project includes a more than 600km multi-use trans-Guinean rail as well as a barge and transhipment vessel port facility.
When fully commissioned and ramped up, annual exports are expected to total 120 million tonnes per year through combined mining operations from joint ventures SimFer and WCS. This is estimated to account for 7% of global iron ore traded internationally.
Rio Tinto is part of the SimFer joint venture through SimFer Jersey Limited, which is a joint venture between Rio Tinto and Chalco Iron Ore holdings, a consortium of Chinese state-owned enterprises.
The joint venture partners held a ceremony at the port in Forécariah prefecture for the start of operations at the largest greenfield integrated mine and infrastructure project in Africa. It was attended by the president of the Republic of Guinea Mamady Doumbouya, who has ruled he country following a coup four years ago.
What they said: “Today we are unlocking an exceptional new source of high-grade iron ore that is in demand from customers for low-carbon steel making, enhancing our world-class portfolio of iron ore mines in the Pilbara and Canada,” Rio Tinto chief executive Simon Trott said.
The sources: Rio Tinto media release, The Financial Times
