Posted on 24 Jun 2024
China Baowu Group (Baowu) has completed the change of equity on joint ventures of the Simandou iron ore project in Guinea with Winning Consortium Simandou (WCS) and made its first capital contribution to them, which means the company has formally become a key shareholder of one of the largest iron ore mining projects in the world, according to Baowu's official news.
Back in September last year, Baowu signed an investment pact with WCS, a consortium made up of Singapore-based Winning International Group, Weiqiao Aluminium (part of the China Hongqiao Group), and United Mining Suppliers, to build up partnerships to develop Blocks 1-2 (the northern part) of Simandou, as Mysteel Global reported.
After the Guinean government approved the investment on May 30, the two groups completed the legal procedures for the project transfer by June 19, including the formation of the board and management team and the alteration of shareholding for the related joint venture companies in mining, railway, and port operations, Baowu reported.
Located in Guinea's Southern Nzérékoré Region, the Simandou mine has total proven iron ore reserves of 2.25 billion tonnes, and the mining project is designed to produce 120 million tonnes/year of high-grade iron ore, Mysteel Global noted.
Baowu's move marks a substantial step forward for the company in expanding its global iron ore resources and establishing a reliable, green, and safe steelmaking raw material supply chain for the steel industry in China, it stressed in the news.
Source:Mysteel Global
