Mining for Development in Guinea: An Examination of the Simandou Iron Ore Project

The Simandou Mountain Range in Guinea contains a major 'tier-one' iron ore deposit, but production has been delayed by legal disputes and infrastructure gaps. The document details a contentious history of mining rights involving Rio Tinto and Beny Steinmetz Group Resources (BSGR), including an FBI probe into alleged bribery. It argues that building a new 700 km railway to Conakry is prohibitively expensive and suggests instead refurbishing the 350 km Lamco rail link through Liberia to Buchanan to accelerate production and foster regional economic integration.

• The Simandou Mountain Range in Guinea holds the world's last substantial 'tier-one' iron ore deposit, with an estimated value of $140 billion over 25 years, which could potentially double Guinea's annual GDP.
• Mining rights for Simandou have been subject to intense dispute; in 2008, President Lansana Conté stripped Rio Tinto of its rights and granted them to the Beny Steinmetz Group Resources (BSGR).
• The US Federal Bureau of Investigation (FBI) has probed the acquisition of mining rights by BSGR, with evidence suggesting that representative Frederic Cilins bribed Mamadie Touré, the fourth wife of President Conté, to secure the licence.
• Rio Tinto paid a $700 million 'Settlement Agreement' to the Guinean government in 2011 to reacquire rights to the southern half of Simandou, though the document notes it is unclear how this payment reflects the New Guinea Mining Code since no ore has been mined.
• Infrastructure is a primary barrier to extraction; while Rio Tinto and a Chinese firm have considered a new 700 km railway to Conakry costing approximately $10 billion, the author argues for refurbishing the 350 km Lamco rail link through Liberia to Buchanan.
• Using the Liberian rail route is presented as more economically feasible, potentially allowing revenue to flow in three years rather than five, and creating synergies with other iron ore deposits in Liberia being explored by Anglo American's Kumba Iron Ore and Jonah Capital.

APA

Harvey, R. (2014). Mining for Development in Guinea: An Examination of the Simandou Iron Ore Project. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2014/02/Policy-Briefing-83.pdf

Chicago

Harvey, Ross. Mining for Development in Guinea: An Examination of the Simandou Iron Ore Project. South African Institute of International Affairs, 2014. https://saiia.org.za/wp-content/uploads/2014/02/Policy-Briefing-83.pdf.

Wikipedia

{{cite report |last1=Harvey |first1=Ross |title=Mining for Development in Guinea: An Examination of the Simandou Iron Ore Project |publisher=South African Institute of International Affairs |date=February 2014 |url=https://saiia.org.za/wp-content/uploads/2014/02/Policy-Briefing-83.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{harvey2014mining, author = {Harvey, Ross}, title = {{Mining for Development in Guinea: An Examination of the Simandou Iron Ore Project}}, institution = {South African Institute of International Affairs}, year = {2014}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2014/02/Policy-Briefing-83.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }