China’s Xuzhou Construction Machinery Group (XCMG) has signed a significant agreement with Simfer, a joint venture of global miner Rio Tinto, to supply essential equipment for the Simandou iron ore project in Guinea. This project is poised to become the world’s largest and highest-grade new iron ore mine, with an anticipated annual production capacity of 120 million metric tons, expected to commence operations in 2025.
XCMG will provide core mining equipment valued at nearly 800 million yuan ($111.91 million), including dozens of 230-metric ton mining trucks. The Simandou project is critical for enhancing the global steel value chain’s green transition but has faced prolonged negotiations due to its complex ownership structure, legal issues, and political instability in Guinea.
Simfer is a collaboration between Rio Tinto, Chalco Iron Ore Holdings, and the Guinean government, aiming to unlock the potential of this untapped iron ore resource.