On September 1, 2020, www.seetao.com learned from foreign media that China’s largest central steel company, China Baowu Iron and Steel Group Co., Ltd., is planning to build the Simandou iron ore mine in Guinea, Africa.

Simandou iron mine is located in the mountainous area of southeastern Guinea, Africa. The project investment may exceed 15 billion US dollars, and the fund size is about 6 billion US dollars. High iron ore prices have become the driving force for steel companies to develop overseas iron ore.

A consortium headed by Aluminum Corporation of China holds 40% of the shares in Blocks 3 and 4 of Simangdu Iron Mine. Baowu Group is negotiating to take over the shares of the aluminum group in the project and jointly develop with other steel companies . Through preliminary investigations, Baowu Group estimates that the total development investment of Blocks 3 and 4, including infrastructure construction, will be approximately US$15 billion (approximately RMB 106.085 billion).

According to the official website of the Chinese Embassy in Guinea, the total reserves of Simandou iron ore total more than 10 billion tons, with an average iron ore grade of 65%. It is considered the world's largest unexploited iron ore with the highest ore quality. Editor/Tian Zengpeng