The Financial Times reported that Beijing is "betting" on the world's largest iron ore mine.
The world's largest iron ore project invested in by China is the Simandou Iron Ore Mine in Guinea, which is led by China Aluminum Company (Chinalco), and is the largest undeveloped iron ore resource project in the world.
Simandou Iron Ore Mine is located in Guinea and is the largest undeveloped iron ore deposit in the world, with a total reserve of about 1.6 billion tons, and an iron oxide grade of over 62%, possessing the advantages of high grade and easy mining. As the world's largest importer of iron ore, China imports more than 100 million tons of iron ore annually, but has long been constrained by international pricing power.
Chinalco plans to invest over 10 billion U.S. dollars to develop the Simandou Iron Ore Mine, and the project is expected to produce 120 million tons of iron ore annually, which can meet the long-term needs of China's steel industry and enhance China's bargaining power in the international iron ore market.
The project faces challenges such as large capital investment and high transportation costs (requiring the construction of a dedicated port and railway), but its strategic significance lies in reducing dependence on imported iron ore and ensuring the security of the steel industry chain.
Simandou (Simandou) is the world's largest and highest quality open-pit iron ore deposit in the southeast of West Africa, Guinea, with a total resource volume of about 500 million tons, and ore grades of 66%-67%, with controlled and inferred reserves of 2.4 billion tons that meet the JORC standards of the Australian Joint Ore Reserves Committee.
The mine area is located in Kouroussa Province, Guinea, in the Simandou Mountains, where the ore bodies are exposed on the surface in layers or lens-shaped, with individual ore bodies up to 3.25 kilometers in length and 1-5 kilometers in width. The ore grade is 65%-68%, with the southern part (areas 3 and 4) having a resource volume of about 2.8 billion tons, and the northern part (areas 1 and 2) about 2 billion tons.
In November 2025, the first batch of iron ore will be transported by rail to the port for loading, and it is expected to be shipped to China on November 11.
Chinese capital holds majority shares in the southern and northern blocks through enterprises such as Chinalco and Baowu Steel. (Combined shareholding is close to 51%)
Original source: www.toutiao.com/article/1848448522161216/
Statement: This article represents the views of the author himself.