Baowu Group led a fund to develop giant iron ore deposits in Guinea, Africa.

SMM News: Baowu Group plans to jointly invest with other steel companies to develop the world's largest untapped iron ore reserves: Simandou Iron Mine in Guinea.

The investment in the project may exceed 15 billion US dollars, and the size of the fund is about 6 billion US dollars. The high iron ore price has become the driving force for steel companies to develop overseas iron ore.

China Baowu Iron and Steel Group Co., Ltd., China's largest central steel company, is planning to build the Simandou Iron Mine (Simandou) in Guinea, Africa.

Simandou Iron Mine is located in the mountains of southeastern Guinea, Africa. According to the official website of the Chinese Embassy in Guinea, the total reserves of Simandou Iron Mine have exceeded 10 billion tons, with an average iron ore grade of 65%. It is considered to be the largest untapped reserves and the highest quality iron ore in the world.

The consortium headed by Chinalco (hereinafter referred to as Chinalco) holds a 40 per cent stake in blocs 3 and 4 of Simandou Iron Mine. Baowu Group is in talks to take over Chinalco's stake in the project and jointly develop it with other steel companies.

Through preliminary research, Baowu Group estimated that the total investment in the development of blocks 3 and 4, including infrastructure construction, is about 15 billion US dollars (about 106.085 billion yuan).

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