The World's Largest Green Iron Ore Mine Project - The Launch of the Simandou Iron Ore Mine in Guinea, West Africa, "Lianhe Zaobao" interviewed the main promoter of the project, Sun Xiushun, founder of Weili International Group [61] (age), to understand his initial motivation and the challenges of the project.
The interview was conducted at Weili International's bauxite mine headquarters in Boke, Guinea. Sun Xiushun built a small Chinese-style courtyard in the camp for himself and his partners to stay when they come to the site for work. (Photo by Chen Yuanzhuang)
"This is my 58th visit to Guinea."
As the world's largest green iron ore mine project - the Simandou Iron Ore Mine in Guinea, West Africa, is about to launch, "Lianhe Zaobao" interviewed Sun Xiushun [61] (age), the main promoter of the project, who mentioned the number of times he has traveled to Guinea.
Weili International is a diversified multinational company headquartered in Singapore, starting from shipping business, now it is the world's largest bauxite shipping company. Its Winning Consortium Simandou (WCS) leads the development of the Simandou Iron Ore Mine, which has attracted global attention.
Guinea is 12,900 kilometers away from Singapore, with no direct flights, and the journey takes at least 22 hours.
The Simandou Iron Ore Mine Can Affect the Global Supply Pattern
Sun Xiushun said that he travels to Guinea four times a year according to plan, plus some temporary visits, making it seven or eight times a year. "Even if I am in Singapore or China, 95% of my day is spent on Guinean matters," he said.
In addition to the Simandou Iron Ore Mine camp in Guinea, Weili International, based in Singapore, and its Winning Consortium, have placed the Singapore flag prominently in each camp in the country. Another company under the Winning Consortium, Weiqiao Aluminum, comes from China. (Photo by Chen Yuanzhuang)
Currently, the global iron ore industry is worth $280 billion (S$3.647 billion), with production controlled by several multinational companies, including Rio Tinto (based in the UK and Australia), BHP Group (Australia), and Vale (Brazil). China is the world's largest importer of iron ore, using it for construction, shipping, and manufacturing industries.
With the new iron ore mine coming into operation, Sun Xiushun said that it can add high-grade iron ore supply to the market, provide more iron ore choices, and make the supply side more diverse, thereby affecting the global iron ore supply pattern.
Partners: This Is a Life-Threatening Matter
For Sun Xiushun, this is also the largest and most expensive project he has ever encountered.
In 2019, he started this mega-project, which had been put on hold for over 20 years, without any experience in iron ore development and operation. In 1997, Rio Tinto was granted exploration rights for the Simandou Iron Ore Mine by the Guinean government, and later obtained partial mining rights, but due to political factors, infrastructure issues, and cooperation disputes, the project was delayed for a long time.
At first, Sun Xiushun always faced skepticism from the industry. "They didn't take it seriously at all, thinking that you, a bauxite miner, want to do an iron ore mine, a big one, how could you have the capability?"
His partners also said, "This is a life-threatening matter." For years, even Western mining giants with sufficient resources and experience had failed to develop it, so it was too difficult for a private enterprise to do it alone.
However, Sun Xiushun was confident that the risks were manageable. He said that since he could successfully complete the bauxite mine in Guinea, he could also complete the Simandou Iron Ore Mine. If not, he would not do it. After receiving full support from his partners and the company, he and his team prepared thoroughly with "ten boxes of materials" and successfully beat the Western competitors to win the northern mine area.
The First Visit to the Mine "I Couldn't Even Find My Waist"
The subsequent six years of development were not easy at all.
Sun Xiushun recalled his first visit to the mine. He first flew to the nearest city, Kankan, then changed vehicles, traveling for nine and a half hours on a red soil road that was "one water and one earth," covering nearly 200 kilometers, arriving at the camp at 10 p.m. When he got off the vehicle, "I couldn't even find my waist."
When his project team delivered the first batch of supplies to the village of Damaro in Simandou, they used 17 trucks, which took 17 days to reach the camp. During the journey, "employees slept in the truck and ate on the roadside."
He said, "This kind of hardship has passed, but looking back, it's also a form of fun."
Six Years Was a Long Wait
From the outside, the project, which cost $23.2 billion (about S$3 billion), spans the mine, railway, and port, and it's amazing that it was completed in six years. However, Sun Xiushun felt that the process was too long.
In September 2021, a military coup occurred in Guinea, overthrowing the then-president Conde, and the transitional government led by professional soldier Dubemba has been in power since then. Political instability added uncertainty to the project.
Under the condition of insufficient funds, Sun Xiushun insisted on continuing the construction of key railway tunnels and 60-meter-high bridge piers because "if we stop, even if there are funds later, the project would not be able to be completed quickly."
Thus, Sun Xiushun continued to build while negotiating, negotiating with the new government and other consortium members for two and a half years. He said, "This process was long and exhausting, draining my energy and passion."
By June last year, China Baowu Steel Group, the world's largest steel producer, completed the equity transfer of the Simandou Winning Consortium. The construction of the railway and port projects had already reached halfway. With ample funding flowing in, the project was fully rolled out and completed rapidly within 1.5 years, finally launching on November 11 this year.
On November 11, the Maramba Port held the launch ceremony of the Simandou Iron Ore Mine. Sun Xiushun said that over the past six years, he had experienced many things, so he viewed it with a calm heart, without particular excitement. (Photo by Chen Yuanzhuang)
He said, "I am a novice in the iron ore sector, I have never done iron ore trade, nor much iron ore transportation. I am an outsider, pushing forward a major iron ore project."
Plans to Develop Industrial Parks and Ship Repair Yards
For him, the completion of the project is just the first step. Providing stable iron ore supply to the world, promoting the economic development of Guinea itself, and ensuring environmental restoration are also important issues.
Sun Xiushun's daughter is 19 years old this year and has just entered the National University of Singapore, majoring in environmental engineering. He once joked to her, "You father destroyed the environment, you go and restore it."
He admitted that developing the mine would definitely damage the environment, but he has the responsibility to minimize the impact and try to restore the environment to its original state.
Additionally, Sun Xiushun has other plans because "Guinea is backward, besides mining development, there is nothing else."
Simandou is an inland area in Guinea, a remote and poor region. Many locals still live in mud houses, with walls mainly made of cow dung and roofs covered with dry grass. (Photo by Chen Yuanzhuang)
His next step is to build an alumina plant locally and use Singapore's experience to create an industrial park with a goal of 10 to 20 years, and also plans to build ship repair yards along the coast to meet the huge shipping needs of West Africa.
He said, "This is my personal idea, it may not be successful, but I can move forward step by step."
Source: Lianhe Zaobao
Original article: https://www.toutiao.com/article/7572435290707493382/
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