Simandou Iron Ore

completed

The project refers to the exploration, evaluation of high grade iron ore resources within a 110 km long Mining Concession that covers the Simandou mountain range in south eastern Guinea. The Mining Convention covering the Concession area is held by a locally incorporated Rio Tinto subsidiary, SIMFER S.A. The proposed IFC investment is the acquisition of a 5% stake in SIMFER S.A. and future contributions to equity cash calls until completion of a Feasibility Study for any of the exploration targets in the Simandou Range. In addition to the equity investment, IFC will have call options to acquire 5% stakes in potential iron ore resources in other Rio Tinto Iron Ore (RTIO) Exploration Licences in Guinea, applied for but not yet granted, namely Simandou North, Simandou South, Forecariah and Diéké (the Additional License Areas). RTIO, a division of Rio Tinto plc., has undertaken extensive iron ore exploration work in Guinea since 1996. Most of the exploration activities were concentrated at the Pic de Fon area within a 7.5 km stretch of the 110 km long Simandou Range. The current exploration program includes 13 different targets spread out over approximately 740 km2, of which the southern zone, namely Pic de Fon and Oueleba are the most advanced. Within the Simandou Range, RTIO exploration activities are targeted at confirming sufficient high grade resources to support a 40-50 mtpa mining operation with a mine life of 50 years plus. If the exploration targets are confirmed, the infrastructure required to transport the iron ore to the coast will be significant and may include up to 650 kms of railroad and construction of a deep water port.