This article outlines the ongoing developments in Guinea’s Mount Simandou iron ore project, particularly the increased involvement of Baowu Steel and the appointment of Bouna Sylla. It also highlights the competitive landscape with various firms vying for contracts related to the Trans-Guinean railway, and Rio Tinto’s negotiations with Chinese clients and the Guinean junta.
In Guinea, notable developments are occurring concerning the Mount Simandou iron ore project. Baowu Steel has amplified its workforce, boosting the team to approximately 150 members, primarily consisting of personnel from China. This move is indicative of increased Chinese influence in the project, which is a significant global iron ore venture.
Bouna Sylla has recently been appointed as a vital figure in the Simandou project. Recognized for his negotiation skills and familiarity within government circles, Sylla faces the challenge of restoring stability within a ministry currently experiencing turmoil. His role is pivotal in managing the complexities of this high-stakes initiative.
Additionally, both a Chinese firm and a US firm have emerged as contenders for a major contract related to the signaling and supply of locomotives for the forthcoming Trans-Guinean railway. The French multinational, Alstom, is also reportedly showing interest in participating in this beneficial venture.
Meanwhile, Rio Tinto, the UK-Australian mining giant, actively engages in identifying subcontractors and negotiating the selling price of iron with Chinese buyers. They await confirming financial support from their partner, Chinalco, with expectations set for March. Furthermore, the company has been in dialogue with the Guinean junta to facilitate progress.
The developments in the Mount Simandou iron ore project illustrate the strategic positioning of various international stakeholders, including Baowu Steel, Rio Tinto, and emerging firms from both China and the US. Bouna Sylla’s leadership will be essential amid the reforms needed within the governmental structure. Furthermore, the interest shown by Alstom underscores the competitive dynamics in infrastructure projects linked to the railway sector in Guinea.
Original Source: www.africaintelligence.com
