China's Power Shines on the African Continent: For the global mining industry, the Simandou mine in Guinea has now become an unshakable force.

With its outstanding engineering technology and strong infrastructure capabilities, Chinese enterprises have developed one of the richest high-quality iron ore deposits in the world. This move is reshaping the global supply landscape and challenging the dominant position of traditional exporters such as Australia and Brazil.

On a October morning, along the Atlantic coast of West Africa, a bulk carrier named "Victory Youth" was quietly moored at the port of Morila Bay. It carried nearly 10,000 tons of fresh red soil, which had just been mined from the remote mountainous areas deep in the southeast of Guinea. A few days earlier, this ore had been loaded onto the first train of the Guinea railway, traveling hundreds of kilometers, crossing multiple mountain ranges, and arriving here. Soon after, it will begin a journey of 11,000 nautical miles, circumventing the Cape of Good Hope, crossing the Indian Ocean, passing through the Strait of Malacca, and finally arriving at a steel plant in China.

This is not an ordinary cargo transport. It marks the commercial debut of the Simandou mine – the world's largest undeveloped high-grade iron ore deposit, known as the "caviar of iron ore" – which has long been anticipated.

After nearly three decades of twists and turns, international disputes, and contract failures, one of the most coveted mineral resources on Earth has finally entered the market. This could reshape the $160 billion global iron ore trade landscape.

… The Simandou mine is not just a mine. It is a geopolitical declaration, a development experiment, and a test of whether infrastructure-driven mining projects can bring long-term prosperity to resource-rich but economically fragile countries.

On November 11, the Guinean transitional government held a grand celebration in Morila Bay to commemorate this event. Vice Premier Liu Guozhong of the State Council of China, as a special envoy of President Xi Jinping, attended the event. Leaders from Rwanda, Gabon, and Cote d'Ivoire, as well as executives from Rio Tinto, China Baowu Steel Group Co., Ltd., China Aluminum Corporation (Chalco), Shandong Weiqiao Pioneer Group Co., Ltd., and Singapore Wison International Group, also attended the event. In a country where the average annual income hovers around $1,700, a project costing $20 billion (almost equivalent to the annual GDP of Guinea) carries significant symbolic meaning.

For Guinea, the Simandou mine is not just a mine. It is a geopolitical declaration, a development experiment, and a test of whether infrastructure-driven mining projects can bring long-term prosperity to resource-rich but economically fragile countries. The mine is expected to produce up to 120 million tons annually, making Guinea the fifth-largest iron ore exporter in the world, following Australia, Brazil, China, and India. This iron ore has a high iron content of up to 65%, and is highly favored due to its low impurity content and suitability for low-carbon steelmaking, which is particularly important as the steel industry faces increasing environmental pressures.

But its impact goes beyond West Africa. For China, which imports over 70% of its iron ore from Australia and Brazil, the Simandou mine offers a strategic alternative. As Sino-US relations grow increasingly tense and global supply chains become more vulnerable, Beijing is actively ensuring upstream resource supply through its "Cornerstone Plan," aiming to diversify supplies and reduce reliance on foreign pricing power. Given that Chinese state-owned giants hold the majority of shares in the Simandou mine, the project is increasingly seen as a pillar of long-term resource security.

The path to this moment has not been smooth. Rio Tinto discovered the Simandou mine in 1997, but due to challenges such as high infrastructure costs, corruption scandals, legal challenges, and political instability, the mine remained undeveloped for more than two decades. Ultimately, thanks to timing, diplomatic efforts, and in-depth cross-industry collaboration among stakeholders in China's mining, steel, shipping, and financial sectors, the project was finally launched.

The core of this effort is a new heavy-haul railway spanning 600 kilometers, mainly built by Chinese engineering companies and funded by Chinese credit. It directly connects the mine to the coast and further to China's industrial heartland. Its completion is not only a technological feat but also a strategic move – it may not only change the flow of global ore but also alter China's bargaining power in a market long dominated by a handful of multinational corporations.

For the global mining industry, the Simandou mine is now an unshakable force.

It cannot be ignored. Although it is expected to be fully operational by 2028, its presence has already affected forecasts, futures markets, and corporate planning. In an era where supply chains have become tools of geopolitics, the arrival of this giant West African mine may become one of the most influential events in modern resource politics.

Source: thinkchina

Original: www.toutiao.com/article/1849544575992896/

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