FORTESCUE Metals Group confirmed it had bid to develop two blocks of Simandou, the giant iron ore deposit located in Guinea, said Reuters.
“Consistent with our active business development program, Fortescue is interested in global opportunities in iron ore and other commodities which align with our strategy and expertise,” said Fortescue CEO, Elizabeth Gaines in an e-mailed statement to Reuters.
“Following the release of information at a public meeting held in Guinea last week, Fortescue confirms that it is participating in the tender for Simandou Blocks 1 and 2. Details of Fortescue’s bid are confidential and there is no guarantee that any bid submitted will be successful,” the e-mail read.
Reuters previously reported that Fortescue and Guinea’s biggest bauxite exporter SMB-Winning were the last two bidders in the running for the rights to develop the two blocks.
A Guinea government commission in charge of the international tender for Simandou blocks 1 and 2 should come to a final decision in around a month, the sources close to the commission told Reuters last week.
Simandou has been mired in protracted legal disputes, while the high cost of infrastructure to transport the ore out of the remote southeastern corner of Guinea has also put a dampener on potential developers’ enthusiasm.
The government insists that ore from Simandou must be exported through Guinea, requiring the developer to build a 650km (400 mile) railway to Guinea’s coast as well as a deep-water port, taking the overall cost of developing the deposit to an estimated $23bn.
Simandou blocks 3 and 4 are owned by a joint venture of Rio Tinto, China Aluminium Corp (Chinalco), and the Guinean government.
