Chinese company wins dredging bid for Simandou iron ore project as mining infrastructure advances
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China Harbour Engineering Co (CHEC), a subsidiary of China Communications Construction Co, recently won the bid for the dredging project of the entrance channel and port basins for the Simandou iron ore project, the world's largest undeveloped iron ore deposit, in Guinea.
The dredging project represents a significant operational achievement for CHEC in the Guinea market, as stated in its official WeChat account on Friday.
This project also signifies another step forward in the development of the high-grade iron ore project, involving joint participation between Chinese enterprises and their international partners.
The expansion and breakthrough in the Simandou project further strengthen CHEC's collaboration with major mining clients in Guinea, solidifying its competitive advantage in the hydraulic engineering market and providing robust support for ongoing development in the Guinea national market, according to CHEC.
The dredging project has a duration of 21 months and involves dredging the shared channels and port basins of the Winning Consortium Simandou (WCS), a consortium backed by Singaporean and Chinese companies, and the Anglo-Australian mining group Rio Tinto.
The channel spans 22.60 kilometers, with a bottom width of 250 meters and an approximate dredging volume of 21.57 million cubic meters, according to CHEC.
The successful bidding of the dredging project occurred just a few days after the reported successful blasting of the No. 5 road in the Simandou mining area, marking another important progress in the mining project.
The successful blasting of the mining project for the first time establishes a solid foundation for subsequent production operations and a series of mine development works.
Infrastructure development for the Simandou mining project is underway after the project officially resumed substantive development in March 2023, following a one-year suspension.
The iron ore project is being progressed in partnership with CIOH, a Chinalco-led consortium, WCS, Baowu, and the Guinean government.
Rio Tinto, one of the investors in Simandou, announced in December 2023 a detailed financial investment plan, revealing that the southern Simandou mining area is expected to commence production in 2025 and increase annual production capacity to 60 million tons within the next 30 months.
The potential total reserves of iron ore in this mine are approximately 10 billion tons, ranking it third globally after Australia and Brazil. Upon production, the annual output is projected to range from 100 million to 150 million tons, contributing to 5 to 7 percent of the world's annual production, according to a Caixin report.
