Wedoany.com Report on Feb 2nd, China Baowu Steel Group Corporation Limited recently announced that by increasing its stake in the Simandou Winning Consortium from 49% to 51%, it has now obtained control of the operating company for Blocks 1 and 2 of the Simandou iron ore deposit in Guinea. This move strengthens the company's management over the development of this globally significant high-grade iron ore deposit.

According to the agreement, the originally Singapore-registered parent company and its Guinean subsidiary have been renamed Baowu Simandou Winning Consortium. This transaction received approval from the Guinean government in May 2024 and was formally completed in January 2026. Currently, BWCS holds an 85% equity stake in the Guinean operating company for Blocks 1 and 2, further solidifying the dominant position of the Chinese side in the Simandou iron ore project.

In Blocks 3 and 4 in the southern part of Simandou, Chinese state-owned enterprises hold shares through a joint venture led by Aluminum Corporation of China (Chinalco), in partnership with Rio Tinto Group and the Guinean government under the Simfer partnership. Simfer collaborates with BWCS to develop shared railway and port infrastructure for the Simandou iron ore project. After nearly three decades of preparation and construction, the Simandou iron ore project achieved its first shipment of iron ore in November last year.

China Baowu stated that this transaction reflects its long-term commitment to the Simandou iron ore project, a comprehensive mining and infrastructure undertaking. The company emphasized: "We are committed to enhancing the project's competitiveness, promoting local development, and adhering to internationally recognized ESG standards." When the two mining centers of the Simandou project operate at full capacity, it is projected to transport up to 120 million tons of high-grade iron ore annually via railway and port, positioning Guinea as a crucial link in the global steel raw material supply chain.

As a major global exporter of bauxite, the development of Guinea's mineral resources is closely watched. Chinese enterprises account for over 70% of the country's bauxite production. The Guinean mining department has not yet commented on this transaction. The progress of the Simandou iron ore project marks a significant shift in the global layout of iron ore resources, with profound implications for related industries.