Latest news with #WinningConsortiumSimandou
Business Times
4 days ago
- Business
- Business Times
Iron ore markets head for shake-up as Singapore-linked Simandou nears production
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral. Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world's richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together accounting for about 80 per cent of seaborne iron ore exports. As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during Singapore International Ferrous Week. Two blocks of the mining concession are being developed by Winning Consortium Simandou (WCS), a joint venture led by Singapore-based mine-to-shipping conglomerate Winning International Group. This is in partnership with China Shandong Weiqiao Group and state-owned China Baowu Steel Group. The remaining two blocks are under a Simfer joint venture, led by British-Australian mining giant Rio Tinto, in partnership with China's Chalco Iron Ore, and the Guinea government. At full capacity, the mine is projected to produce up to 120 million tonnes of high-grade iron ore (about 65 per cent iron content) annually. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Trade implications Cheong Jin Yu, head of Baltic Exchange Asia, told The Business Times that Baltic Exchange is keeping an eye on the development of Simandou as a key force to change trade routes of iron ore. 'What I would imagine would happen is that, if and when Simandou becomes a consistent supplier into the iron ore market, the (Baltic Exchange's) advisory council will tell us it's time to start pricing a route out of. So it will be a West Africa-to-China route,' he said. He added that once an index is established, the exchange would then develop different tools such as futures for the new index for market players to manage freight volatilities. The impact of Simandou's supply on key iron ore routes such as China-Australia hinges on actual cargo flows, Cheong said, with markets awaiting clarity. Vamsi Goutam, chief commercial officer of Tata Steel Minerals Canada, said during a panel that Simandou's supply could push up volumes and potentially freight rates in the Atlantic trades. He expects 'freight balancing' as shipping capacity might not pick up at the same rate as the steep increase in dry bulk volume. De-risking for iron ore producers The expected influx of high-grade iron ore from Simandou might worsen an oversupply situation as China's demand growth softens, which would put more pressure on iron ore producers. 'A lot of producers who are high on the cost curves will come under pressure,' said Claire Chong, senior analyst of Thurlestone Shipping, noting that their operational resilience will come into play. Francois Lavoie, senior vice-president of sales of technical market and product development at Champion Iron, said that as Simandou is 'mixing things up', small producers such as Champion Iron are trying to diversify offerings as part of their de-risk strategy. This includes converting production into iron ore of even higher grades and lower impurities, he noted. India's rising appetite Baltic Exchange's Cheong noted that the industry is also monitoring how iron ore imports to India would evolve, as the second-largest steel producer in the world ramps up its production. Paul Bartholomew, lead analyst of S&P Global Commodity Insights, noted that India is expected to emerge as a major iron ore importer, with the import forecast in 2026 to more than double from 2024's imports. However, Thurlestone Shipping's Chong noted that despite a rising projection, India's iron ore imports are still 'too small to compare with China's'. While India's iron ore import is expected to hit more than 130 million tonnes, China's iron ore imports are projected to stay above 1.1 billion tonnes to 2035, S&P Global indicated.
Business Times
4 days ago
- Business
- Business Times
Iron ore markets brace for shake-up as Singapore-linked Simandou nears production
[SINGAPORE] Global iron ore trade is facing a pivotal shift as Simandou, a massive iron ore mine in Guinea being developed by a Singapore conglomerate, is about to ramp up supply of the ferrous mineral. Estimated at 2.4 billion tonnes of high-grade iron ore as one of the world's richest untapped deposits, and projected to start production by end-2025, Simandou is a strategic project for China as it aims to diversify its suppliers from Australia and Brazil – the two countries together accounting for about 80 per cent of seaborne iron ore exports. As a long-anticipated supply disruptor, the project is closely monitored by the iron ore industry, which is also betting on India to absorb demand lost in China, based on panel discussions during Singapore International Ferrous Week. Two blocks of the mining concession are being developed by Winning Consortium Simandou (WCS), a joint venture led by Singapore-based mine-to-shipping conglomerate Winning International Group. This is in partnership with China Shandong Weiqiao Group and state-owned China Baowu Steel Group. The remaining two blocks are under a Simfer joint venture, led by British-Australian mining giant Rio Tinto, in partnership with China's Chalco Iron Ore, and the Guinea government. At full capacity, the mine is projected to produce up to 120 million tonnes of high-grade iron ore (about 65 per cent iron content) annually. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Trade implications Cheong Jin Yu, head of Baltic Exchange Asia, told The Business Times that Baltic Exchange is keeping an eye on the development of Simandou as a key force to change trade routes of iron ore. 'What I would imagine would happen is that, if and when Simandou becomes a consistent supplier into the iron ore market, the (Baltic Exchange's) advisory council will tell us it's time to start pricing a route out of. So it will be a West Africa-to-China route,' he said. He added that once an index is established, the exchange would then develop different tools such as futures for the new index for market players to manage freight volatilities. The impact of Simandou's supply on key iron ore routes such as China-Australia hinges on actual cargo flows, Cheong said, with markets awaiting clarity. Vamsi Goutam, chief commercial officer of Tata Steel Minerals Canada, said during a panel that Simandou's supply could push up volumes and potentially freight rates in the Atlantic trades. He expects 'freight balancing' as shipping capacity might not pick up at the same rate as the steep increase in dry bulk volume. De-risking for iron ore producers The expected influx of high-grade iron ore from Simandou might worsen an oversupply situation as China's demand growth softens, which would put more pressure on iron ore producers. 'A lot of producers who are high on the cost curves will come under pressure,' said Claire Chong, senior analyst of Thurlestone Shipping, noting that their operational resilience will come into play. Francois Lavoie, senior vice-president of sales of technical market and product development at Champion Iron, said that as Simandou is 'mixing things up', small producers such as Champion Iron are trying to diversify offerings as part of their de-risk strategy. This includes converting production into iron ore of even higher grades and lower impurities, he noted. India's rising appetite Baltic Exchange's Cheong noted that the industry is also monitoring how iron ore imports to India would evolve, as the second-largest steel producer in the world ramps up its production. Paul Bartholomew, lead analyst of S&P Global Commodity Insights, noted that India is expected to emerge as a major iron ore importer, with the import forecast in 2026 to more than double from 2024's imports. However, Thurlestone Shipping's Chong noted that despite a rising projection, India's iron ore imports are still 'too small to compare with China's'. While India's iron ore import is expected to hit more than 130 million tonnes, China's iron ore imports are projected to stay above 1.1 billion tonnes to 2035, S&P Global indicated.
Zawya
29-04-2025
- Business
- Zawya
African Mining Week: Role of infrastructure to unlock mining potential
As Africa expands its regional corridors with major rail and port projects, African Mining Week 2025 in Cape Town from Wednesday, 1 October 2025 to Friday, 3 October 2025 will showcase the critical role of infrastructure in unlocking mining potential and driving industry investment. Africa and its global partners are accelerating investments in regional corridors, prioritising port, road and rail infrastructure to enhance mining operations. As logistics infrastructure takes centre stage, the upcoming African Mining Week (AMW) will spotlight key projects and regional corridor developments, offering prime investment opportunities for global logistics and mining stakeholders. Trans-Guinean Railway: advancing iron ore exports: In February 2025, the Winning Consortium Simandou awarded a $248m contract to US engineering firm Wabtec for locomotives supporting the Trans-Guinean Railway project. This railway will transport minerals from Guinea's Simandou Iron Ore Project – the world's second-largest untapped iron ore deposit. The project is expected to facilitate the extraction of 1.8 billion tons of iron ore, significantly boosting Guinea's export revenue. Lobito corridor: Strengthening cross-border trade: Angola is set to begin construction of a 260km section of the Benguela Railway in 2025 as part of the Lobito Corridor initiative. In September 2024, the International Finance Corporation signed concession agreements with Zambia and Angola to finance, construct, own and operate an 800km railway section of the corridor, linking the two nations. Once completed, the $10bn Lobito Corridor will streamline mineral exports from Zambia, the Democratic Republic of the Congo and Angola to international markets. Abidjan-Lagos Corridor: Boosting West African connectivity: The $15.6bn Lagos-Abidjan Highway, slated for construction in 2026, will connect Nigeria, Benin, Togo, Ghana and the Ivory Coast, facilitating regional trade and mining exports. Funded by the African Development Bank (AfDB), the European Union and the ECOWAS Commission, the 1,028km project is expected to generate 70,000 jobs and enhance economic integration. AfDB President Akinwumi Adesina emphasised its significance: "It's only through regional corridors that we can move goods and services easily across the continent, lower transport costs, promote integration and achieve impactful economic development." Tazara Railway: Expanding access to East African markets: In September 2024, Tanzania, Zambia and China signed an agreement to modernise and expand the Tanzania-Zambia Railway (Tazara). The upgrade will optimise the transport of minerals such as copper from Zambia, as well as uranium and rare earths from Tanzania, improving access to international markets via the Port of Dar es Salaam. With Zambia targeting an annual copper production of 3 million tons by 2031, the revitalised railway will strengthen export capabilities and attract global buyers to the Zambian Copperbelt region. AMW brings together African mining projects and international investors under one roof, facilitating strategic partnerships that optimise mineral logistics and drive industry growth. As infrastructure investments accelerate across regional corridors, the event provides a vital platform to explore emerging opportunities in rail, port and road development. With major projects reshaping Africa's mining supply chains, AMW offers key insights into the future of mineral transportation and trade. African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
18-04-2025
- Business
- Zawya
Infrastructure Investments Propel Africa's Mining Growth
Africa and its global partners are accelerating investments in regional corridors, prioritizing port, road and rail infrastructure to enhance mining operations. As logistics infrastructure takes center stage, the upcoming African Mining Week (AMW) will spotlight key projects and regional corridor developments, offering prime investment opportunities for global logistics and mining stakeholders. Trans-Guinean Railway: Advancing Iron Ore Exports In February 2025, the Winning Consortium Simandou awarded a $248 million contract to U.S. engineering firm Wabtec for locomotives supporting the Trans-Guinean Railway project. This railway will transport minerals from Guinea's Simandou Iron Ore Project – the world's second-largest untapped iron ore deposit. The project is expected to facilitate the extraction of 1.8 billion tons of iron ore, significantly boosting Guinea's export revenue. Lobito Corridor: Strengthening Cross-Border Trade Angola is set to begin construction of a 260-km section of the Benguela Railway in 2025 as part of the Lobito Corridor initiative. In September 2024, the International Finance Corporation signed concession agreements with Zambia and Angola to finance, construct, own and operate an 800-km railway section of the corridor, linking the two nations. Once completed, the $10 billion Lobito Corridor will streamline mineral exports from Zambia, the Democratic Republic of the Congo and Angola to international markets. Abidjan-Lagos Corridor: Boosting West African Connectivity The $15.6 billion Lagos-Abidjan Highway, slated for construction in 2026, will connect Nigeria, Benin, Togo, Ghana and the Ivory Coast, facilitating regional trade and mining exports. Funded by the African Development Bank (AfDB), the European Union and the ECOWAS Commission, the 1,028-km project is expected to generate 70,000 jobs and enhance economic integration. AfDB President Akinwumi Adesina emphasized its significance: "It's only through regional corridors that we can move goods and services easily across the continent, lower transport costs, promote integration and achieve impactful economic development." TAZARA Railway: Expanding Access to East African Markets In September 2024, Tanzania, Zambia and China signed an agreement to modernize and expand the Tanzania-Zambia Railway (TAZARA). The upgrade will optimize the transport of minerals such as copper from Zambia, as well as uranium and rare earths from Tanzania, improving access to international markets via the Port of Dar es Salaam. With Zambia targeting an annual copper production of 3 million tons by 2031, the revitalized railway will strengthen export capabilities and attract global buyers to the Zambian Copperbelt region. AMW brings together African mining projects and international investors under one roof, facilitating strategic partnerships that optimize mineral logistics and drive industry growth. As infrastructure investments accelerate across regional corridors, the event provides a vital platform to explore emerging opportunities in rail, port and road development. With major projects reshaping Africa's mining supply chains, AMW offers key insights into the future of mineral transportation and trade. African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@ Distributed by APO Group on behalf of Energy Capital&Power.
