China-Guinea ties bear fruit as 1st Simandou ore shipment arrives

The arrival of the first shipment of high-grade iron ore from Guinea's Simandou deposit at Rizhao Port in Shandong province on Wednesday marks a transformative shift in the global steel industry, providing the high-purity feedstock essential for China's transition toward low-carbon production.

The arrival represents the first time ore from Simandou's blocks 3 and 4 has entered the Chinese market, providing a critical alternative to traditional, lower-grade ores as the world's largest steel producer seeks to slash industrial emissions.

The shipment was delivered by SimFer, a joint venture between the government of the Republic of Guinea, Rio Tinto and Chalco Iron Ore Holdings — a Chinalco-led joint venture of leading Chinese SOEs including China Baowu Steel Group Corp.

Located in southeastern Guinea, Simandou is home to one of the world's largest untapped reserves of high-grade iron ore. The project is being developed through a complex international partnership involving the Guinean government, SimFer, the Winning Consortium Simandou (WCS), and China's Baowu.

The high-grade ore is expected to serve as a catalyst for high-quality development within the Chinese steel industry, while the successful delivery underscores large-scale international collaboration, said industry experts.

While China has long been a major market for global mining giants thanks to its vast market size, major players including Rio Tinto, BHP and Vale are keen to forge new partnerships with the country in projects abroad, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

The contribution of Chinese partners extends far beyond financial backing, playing a vital role through the supply of high-tier equipment and indispensable technical expertise in infrastructure construction, he said.

According to Rio Tinto, Chinese enterprises have played a foundational role in the construction of the massive infrastructure required to unlock Simandou's potential.

Key partners include China Railway 18th Bureau Group Corp and China Harbour Engineering Co Ltd, which are providing critical equipment and services to support the construction, and Chinese construction machinery manufacturer XCMG Group, which provided essential engineering services and heavy equipment to bridge the gap between the inland mines and the coast, it said.

Zhao believes this strategic shift toward a low-carbon economy offers "tremendous potential" for deeper collaboration between global miners and Chinese entities.

"This collaboration has cultivated a dynamic environment for exchanging expertise and resources, enabling all parties to capitalize on their respective strengths while establishing a robust framework for the project's long-term success," he said.

"Historically a primary supplier to China's domestic steel sector, Rio Tinto is now expanding its strategic footprint by deepening cooperation with Chinese partners on international ventures outside of both home markets," he said.

This sentiment is echoed by Rio Tinto, which anticipates expanding its domestic and international partnerships with Chinese entities to meet the rising global demand for the high-grade, low-impurity iron ore essential for cleaner steel production.

Upon arrival in Shandong province, the iron ore will undergo processing at a dedicated tertiary crushing facility located within the port.

This localized processing model, developed in collaboration with Chinese port authorities, is designed to enhance operational efficiency and market competitiveness before the ore is sold to domestic steelmakers, it said.

"We are encouraged to see the first shipment of Simandou iron ore arrive in a Chinese port," said Xu Feng, Rio Tinto China CEO.

"Rio Tinto's long-standing partnership with Chinese stakeholders is crucial to the successful delivery of the Simandou project. This premium product will play an increasingly important role in enabling lower-emissions steelmaking and supporting the industry's journey toward net zero, further strengthening our world-class iron ore portfolio in Australia's Pilbara region and Canada."

The arrival follows the full commencement of operations for the project's mine, railway, and port infrastructure in November 2025. As testing and commissioning of the specialized logistics network continue, SimFer expects to steadily ramp up production.

The joint venture aims to reach an annual capacity of 60 million metric tons within approximately 30 months, it said.

Rio Tinto is currently China's largest iron ore supplier with around 250 million tons of shipments every year. It also provides key products such as copper, bauxite, alumina, borate, salt and other minerals to the country.

Rio Tinto's procurement of goods and services from Chinese suppliers reached $4.3 billion in 2025, a record high, as the mining giant increasingly integrates the country's high-tech manufacturing and rapid innovation into its global operations.

zhengxin@chinadaily.com.cn