On December 22, 2022, China Baowu, Win Alliance Holding Company, Simfer and the Guinean government jointly signed the "Simandou Infrastructure Project Term Sheet" in Conakry, the capital of Guinea, focusing on the overall development of the Simandou project. Important cooperation consensus has been reached on joint investment and development of infrastructure such as railways and ports.

The Simandou Iron Mine is located in Kairouane Province in the southeast of Guinea. It is the undeveloped iron ore with the largest reserves and the highest quality in the world. It has an annual production capacity of 120 million tons of high-quality iron ore in the initial stage. However, the development of the Simandou iron mine requires the construction of more than 600 kilometers of railways across the east and west of Guinea, as well as infrastructure such as ports on the west coast.

Among them, the mining rights in the northern block of Simandou (blocks 1 and 2) are currently held by the winning alliance Simandou Holding Company, with a promised investment of 14 billion US dollars. Winning Alliance is a consortium formed by Winning International Group (45%), Weiqiao Aluminum (35%, affiliated to China Hongqiao Group), and United Mining Supply International Corporation (20%, United Mining Supply). It has experience in the development of 50 million tons of bauxite per year and the construction and operation of the 120-kilometer Dasan Railway in Guinea, as well as operating experience in ports, transfers, and ocean transportation.

Previously, on July 27, the Guinean government, the Win Alliance Holding Company, and Simfer established the Trans-Guinea Company (CTG) in Conakry, the capital of Guinea, as an important joint venture leading the development of Simandou's infrastructure. Among them, the Win Alliance Holding Company , Simfer each hold 42.5% of the shares, and the Guinean government holds 15% of the shares. The establishment of the trans-Guinea company marks the official joint effort of the northern block of Simandou (blocks 1 and 2, held by the Win Alliance Holding Company) and the southern block (blocks 3 and 4, held by Simfer) Development of Du Iron Ore Infrastructure.

On September 30, Baowu Resources Co., Ltd. and Win Alliance Simandou Holdings (Singapore) held a cloud signing ceremony for the core terms of the cooperation agreement in Shanghai and Beijing on the cooperation in the northern block of Simandou Iron Mine in Guinea. This is also China Baowu's official announcement of "entering" the northern Simandou project.

It is a milestone that the four parties of this project signed relevant agreements on cooperation conditions such as the investment structure, capital contribution conditions, construction models, and localization policies of the infrastructure company. However, the final investment of the Bao Consortium led by China Baowu still depends on the relevant approvals of the governments of China and Guinea. Editor/Xu Shengpeng