PREVIEW
Government hopes China-controlled iron ore mine will catalyse a national transformation
Ministers plan to use revenues from the recently opened Simandou iron ore mine to underpin Guinea’s first sovereign wealth fund, aiming to have it operational by the second quarter of 2026 with an initial US$1 billion. Planning Minister Ismaël Nabé says that the government has been advised by South Africa and Singapore on how to run the fund, which will be modelled on Singapore's Temasek and Malaysia's Khazanah.
Developed by mining companies Winning Consortium Simandou, Baowu, Chinalco and Rio Tinto, Simandou includes a 650 km dual-track railway and a deep-water port at Moribaya. (Dispatches, 27/10/25, Minerals exports surge in volatile market). China owns 75% of it and Vice-Premier Liu Guozhong attended the inauguration ceremony on 11 November.
Officials are optimistic about the potential of Simandou, which has the world’s largest untapped iron ore deposits. The $20bn operation is targeting annual production of 120 million metric tons of high-grade ore. That would make Guinea a top iron ore exporter and, according to the International Monetary Fund, produce revenues equivalent to 3.4% to gross domestic product between 2030 and 2039.
The mine is vital to the military junta, led by Colonel Mamady Doumbouya since 2021, in its bid to counter international criticism and boost public support (AC Vol 63 No 1, No timeline for return to civil rule).
Djiba Diakité, President of the Simandou 2040 Strategic Committee, has described the project as the ‘driving force behind a national transformation’. The authorities are hopeful its revenues can be used to attract private investment into education, infrastructure and agriculture.
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