OREANDA-NEWS. On 31 December 2015 the Simandou South Project submitted the initial bankable feasibility studies for the Simandou rail and port infrastructure projects to the Government of Guinea.

Version 1 of the Rail and Port Bankable Feasibility Study reports (BFS) outline the initial assessments of the capital cost and construction schedule for the development of the rail and port elements of the Simandou South project and are based on submissions by leading Chinese construction contractors, China Railway Construction Corporation (CRCC),, and China Harbour Engineering Company (CHEC). Activities will now focus on the development of an integrated project schedule across these studies to refine and optimise the development plan for the project.

The Simandou Partners will meet with representatives from the Government of Guinea in January to review the first versions of the Rail and Port BFS together with the Mine BFS submitted by Simfer to the Government on 14 December 2015. The project partners will also review delivery of the Government’s State Enabling Activities which are essential for the development of the project.

Alan Davies, Rio Tinto chief executive of Diamonds & Minerals said, “I am pleased that the Simandou partners have delivered the initial versions of both the mine and infrastructure bankable feasibility studies within the agreed target dates, which are significant milestones in the development of this project. Combined together with the Government’s State Enabling Activities, they are fundamental to enable engagement with prospective investors.”

Bao Yu, president of Chinalco Iron Ore Holdings said, "The delivery of the initial rail and port feasibility studies by leading Chinese construction companies represent important milestones for the Simandou project. We expect that, enabled by leading efforts of the Rio Tinto team, the partners will continue to refine the studies, downsize the investment and enhance the project economics so as to deliver the final reports of high quality in May 2016.”

Delivery of the final Simandou South Project Bankable Feasibility Studies and the State Enabling Activities in May 2016 are essential catalysts for the formation of the independent Infrastructure Consortium who will fund and build the port and rail infrastructure. It is at this point that a final assessment of the technical and economic feasibility of the Simandou South Project be made.

About the Simandou South Project

Simandou South is a world-class iron ore mining development located in the south-east of Guinea. The Simandou South Project partners include the Republic of Guinea (7.5%), Rio Tinto (47%), Aluminum Corporation of China (“Chinalco”) (41%) and the International Finance Corporation (“IFC”) (4.6%), a member of the World Bank Group. The Project will be the largest combined iron ore mine and infrastructure project ever developed in Africa, with the potential to transform the Guinean economy and transport infrastructure. The project comprises three principal components:

• A high-grade iron ore mine (blocks 3 and 4) of 100 million tons per year at full production;
• A new multi-user railway to transport iron ore to the Guinean coast;
• A new deep-water multi-user port in the Forécariah prefecture.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore. Activities span the world and are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.

About Chinalco

Aluminum Corporation of China (“Chinalco”) is a key state-owned enterprise directly supervised by the central government. It is an international diversified mineral resources company and one of the largest diversified metals and mining companies in China. Chinalco is an industry leader in processing nonferrous minerals. It conducts exploration and mining, processes various mineral resources including bauxite, copper and other metals, and provides engineering and technical services to the mining industry. Headquartered in Beijing, Chinalco and its subsidiaries have operations in 22 provinces in China and 15 overseas offices in 10 countries and regions.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.