The Simandou mine, inaugurated in November with a large-scale ceremony in Guinea, is presented as a politically critical showcase project ahead of the December 28 elections. These elections are the first in the country since the military coup in 2021. Mamady Doumbouya, the junta leader who seized power after the coup, is seen as leading the race, and a victory could extend his term by seven years.
Considered one of the world's largest unexploited iron ore reserves, Simandou represents the pinnacle of Guinea's mining potential. While the country is already a global supplier of bauxite used in aluminum production, this wealth is known to have not adequately translated into social welfare.
According to information obtained by Reuters from current and former employees and company sources, a mass layoff process has begun at Simandou. Unnamed sources indicate that the effects of this process may be harsher and more widespread than in similar-scale mining investments.
The project aimed to meet approximately 7% of global iron ore demand with an annual production capacity of 120 million metric tons. These targets had reinforced expectations of long-term employment and income growth for those living in the region. However, the layoffs that occurred with the start of exports showed that Simandou presented a picture that contradicted these hopes in the short term.
Source: Reuters
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