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Iron ore prices have risen as Rio Tinto halts production at Simandou

Rio Tinto has halted production at its Simandou project in Guinea following a workplace accident. The incident pushed iron ore prices to their highest levels in a week across Asian markets. The company said it will launch an investigation and strengthen safety measures.

 Iron ore prices have risen as Rio Tinto halts production at Simandou

Rio Tinto announced a temporary halt in production at its SimFer project in Guinea’s Simandou region after a contractor lost their life in a workplace accident. The company stated that support is being provided to employees and a thorough investigation has been initiated.

The company’s newly appointed CEO, Simon Trott, is expected to visit the site in the coming days. The incident marks the seventh fatality in Rio Tinto’s global operations over the past two years, highlighting ongoing safety risks.

In the short term, iron ore demand remains strong despite production restrictions in Tangshan, China. This has contributed to prices on the Dalian and Singapore exchanges reaching their highest levels since August 14. Rio Tinto’s Australian production capacity is expected to increase by 130 million tonnes in the coming years, supporting the company’s overall output.

Meanwhile, Rio Tinto is working with the Guinean government and other project developers to complete the infrastructure needed to transport ore from the mine to maritime ports for export. Once operating at full capacity, the Simandou project is expected to produce around 120 million tonnes of high-quality iron ore annually.

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