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Guinea ramps up Simandou iron ore exports to feed China's 'green steel' mills

Guinea has accelerated shipments from Simandou — one of the world's largest high-grade iron ore deposits — to China, the South China Morning Post reported. Beijing wants high-purity ore for low-carbon steel; the deal could deliver up to $3.5bn in annual revenue for Conakry. Australian iron-ore exporters may have to reassess their market positioning.

An open-pit iron ore mine under an overcast sky
An open-pit iron ore mine under an overcast skyPhoto: Kefentse Molotsane / Pexels
South China Morning Post2 h agoBHP RIO VALE
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Guinea has launched its first major export wave from Simandou, the South China Morning Post reported. Chinese buyers including Wuhan Iron & Steel and Baowu Steel are routing high-purity ore preferentially to electric-arc furnace projects. High-grade ore is a critical input for low-carbon steel making.

The deal could bring up to $3.5bn in annual revenue to Conakry, equivalent to roughly 18% of Guinea's GDP. The government projects that with completion of the Simandou rail-port corridor it will reach an annual export volume of 60 million tonnes by 2027. Chinese contractors have taken on 70% of the related infrastructure work.

Australia's BHP and Rio Tinto are watching for possible pressure on global iron ore prices. Goldman Sachs analysts estimated benchmark prices could fall 8–12% in 2027 once Simandou reaches full capacity. Vale and Fortescue have set aside investor-presentation space for the topic.

CommoditiesTradeEnergyBHPRIOVALEAfricaSouth China Morning Post
Source: South China Morning Post
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This article is an AI-curated summary of the original story published by South China Morning Post. The illustration is a stock photo by Kefentse Molotsane from Pexels and is not from the original story.

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