Guinea accelerates iron ore processing facilities to end raw material exports

Guinea is accelerating the development of alumina refineries and iron ore pellet plants with the aim of ending long-standing raw material exports. According to the minister and officials, the country plans to export processed products instead of raw bauxite and iron ore by establishing local refineries and processing facilities. This move is expected to add more value to the economy, increase industrial employment, and make the country less vulnerable to commodity price fluctuations.

This week, Guinea is preparing to make its first shipments from the world’s largest Simandou iron ore mine. The World Bank highlighted in July that increasing domestic processing capacity would bring significant economic benefits. Currently, the country exports about 60% of its produced bauxite to China, while one-third of the iron ore from Simandou is sent to Chinese steel mills.

Iron ore processing and feasibility studies

Mines Minister Bouna Sylla emphasized that Guinea aims to process its iron ore locally. Officials stated that under current agreements, Rio Tinto and the Winning Consortium Simandou, jointly developing the Simandou deposit, are required to conduct feasibility studies for either a 500,000-ton steel mill or a 2 million-ton pellet plant. The studies must be completed within two years of the first exports. Otherwise, Guinea may hire a leading global firm, at the expense of the joint venture managing Simandou’s rail and port operations, to carry out the feasibility study.

Sylla stated, “We have determined the minimum capacities of this facility based on sound economic principles.” Rio Tinto officials also confirmed that the Simfer venture is committed to conducting the pellet plant feasibility study.

The minister noted that Guinea’s proximity to Europe and the U.S. provides a logistical advantage and that producing pellets and direct reduced iron for green steel is the preferred route. While acknowledging energy as the biggest challenge, Sylla added that the country is seeking investments in hydro, solar, and liquefied natural gas (LNG) projects.