Guinea’s Simandou project aims to utilize its vast iron ore resources with a $20 billion investment, expected to create 60,000 jobs and enhance education. Political upheavals, safety concerns, and environmental issues complicate timelines, leading to skepticism about production starting before 2028.
Guinea’s Simandou region holds the world’s largest untapped iron ore deposits, estimated at 2.8 billion tonnes. This area has a history of scandals related to mining licenses dating back to the 1990s, which have delayed production. The current ruling junta claims a new mining complex set to open later this year will transform Guinea’s economy, where mining represents 90% of exports. Ismaël Nabé, planning minister, states, “This mining project must be for Guinea what oil was for the Gulf.”
Plans for the Simandou site include a 650 km railway to three deep-sea ports and a metallurgical plant, with an expected investment of $20 billion. This initiative is anticipated to create approximately 60,000 jobs and provide educational resources for many children living below the poverty line. Simandou is being marketed as a “bridge to prosperity” on Guinea’s official platforms, promising to rival Australia’s iron ore production.
Part of the infrastructure includes a $248 million contract with American company Wabtec for railway locomotives. Despite initial progress, significant parts of the railway remain incomplete, raising doubts about the projected October production start. Concerns also linger regarding safety, financing, and environmental impacts from the project.
Post-coup changes in ownership have added complexity, with two mining blocks owned by an Anglo-Australian consortium and two by a Singapore-based consortium. Activists like Mamoudou Diallo have raised alarms over a lack of transparency, echoing the sentiments of Joanne Jones from EITI, who emphasized the need for public contract disclosure associated with the project.
Protests in local areas have turned violent, with incidents resulting in deaths linked to alleged recruitment failures and workplace accidents. Environmental complaints from villagers about pollution from construction waste have also been noted, contradicting government claims of lower carbon emissions due to higher quality ore.
Bright Simons from the Imani Centre for Policy and Education stresses that the collaboration among the two consortiums complicates the timeline for operations. Observers suggest that true production may not commence until 2028. Meanwhile, political agendas surrounding the project’s timeline fall under scrutiny as the junta prepares for upcoming elections, hinting that the push for production might serve political ends rather than economic realities.
The Simandou project in Guinea has the potential to significantly impact the country’s economy by tapping into its vast iron ore reserves. However, ongoing concerns regarding transparency, safety, and environmental implications need addressing to realize these benefits fully. The project’s timeline remains uncertain, with predictions of production delays and political influences adding complexity to its future.
Original Source: www.theguardian.com
