According to Mining.com, Guinea’s military-led government is intensifying its push for local beneficiation of the country’s mineral wealth, requiring mining companies operating the giant Simandou iron ore project to build domestic processing infrastructure—potentially forcing Rio Tinto to commit significant capital to downstream facilities.

Since coming to power in 2021, Guinean authorities have mandated that all mining operators submit plans for local processing plants. Officials argue that iron ore smelters or beneficiation facilities are essential for the country to capture greater value from its resources and channel mining revenues into broader economic development—particularly in agriculture, education, and infrastructure.

This move aligns with a broader trend across Africa, where governments are increasingly pressuring foreign miners to move beyond raw exports. Guinea, the world’s second-largest bauxite producer, has already terminated agreements with companies like Emirates Global Aluminium (EGA) for failing to meet local aluminum smelter construction timelines.

Ismaël Nabe, Guinea’s Minister of Planning and International Cooperation, told the Financial Times:

“We need to build refineries and processing plants. This is our strategic plan. Ore extracted in Guinea must also be processed here.”

The Simandou deposit, one of the world’s largest and highest-grade untapped iron ore resources, is divided into four blocks:

• Blocks 1 & 2: Developed by the Winning Consortium

• Blocks 3 & 4: Operated by a Rio Tinto-led joint venture

The entire project is expected to reach a production capacity of 120 million tonnes per year of high-grade iron ore, with first shipments slated for November 2025.

To support exports, the project includes a 600-kilometer railway linking the mine to a new deep-water port on Guinea’s Atlantic coast—managed by La Compagnie du TransGuinéen (CTG), in which Rio Tinto holds a 42.5% stake.

Rio Tinto first secured exploration rights to Simandou in 1997, but progress has been repeatedly delayed by political instability—two coups, four heads of state, and three presidential elections have marked the project’s decades-long gestation.

Now, with production imminent, the government’s beneficiation mandate adds a new layer of complexity. While Rio Tinto will operate one of the two mines in the Simandou range, it may now be compelled to invest billions in smelting or pelletizing facilities to comply with national policy.

Minister Nabe drew a parallel between Guinea’s ambitions and the iron ore boom in Western Australia a decade ago, stressing that mining wealth must serve national development—not just foreign shareholders.

As global demand for responsibly sourced, value-added critical minerals grows, Guinea’s stance reflects a strategic recalibration—one that could reshape investment dynamics across the African mining sector.

(Source: Ministry of Natural Resources)