Global law firm DLA Piper has advised Chalco Iron Ore Holdings (CIOH) on its investment in the Simandou iron ore deposit in Guinea.
DLA Piper was appointed in July 2023 and has provided legal advice on multiple aspects of the project.
The firm says the Simandou mine is touted as the largest and richest undeveloped high-grade iron ore deposit in the world. As such, it is a significant transaction that will help to decarbonise the steel industry, as well as make a significant contribution to Guinea’s economic development by bringing high quality iron ore revenue to Guinea.
High-grade iron ore assists in the decarbonisation of steelmaking by enabling more efficient and cleaner production processes, significantly reducing CO2 emissions.
Rio Tinto (ASX:RIO) has now received all the necessary regulatory approvals to begin development of the Simandou iron ore deposit in Guinea, as reported by Mining.com.au.
The receipt of necessary Guinean and Chinese regulatory approvals, and the recent approval from the Simfer board, clears the way for its US$6.2 billion ($9.2 billion) investment in the development.
Simfer is a joint venture between Rio Tinto (45.05%), Chalco Iron Ore Holdings (CIOH) (39.95%) and the Government of the Republic of Guinea (15%).
DLA Piper’s Hong Kong-based foreign legal consultants Carolyn Dong and Russell Wilkinson led the CIOH transaction, together with Karim Maalioun, based in London. All are part of the firm’s Energy and Natural Resources sector team.
Dong says the DLA Piper team worked tirelessly to help its client overcome challenges and finally reach a closing.
“This transaction demonstrates DLA Piper’s strength in providing our clients with a best-in-class service spanning multiple areas of law across different global jurisdictions. Our firm truly operates as one global team,” she says.
The Simandou project has been in development for over a decade. CIOH and Rio Tinto formed joint venture company Simfer Jersey to invest in the development of a 60 million tonne per year iron ore mine in blocks 3 and 4 of the Simandou project.
Simfer Jersey will also invest and fund its share of a co-developed rail and port infrastructure, including more than 600km of new multi-use trans Guinean railway and port facilities which will allow the export of up to 120 million tonners of mined ore per year.
The first production is expected in 2025, ramping up over 30 months. The mine will initially deliver a single fines product before transitioning to a dual fines product of blast furnace and direct reduction ready ore.
By 11 July 2024, CIOH has paid its share of capital expenditures amounting US$985 million required by Simfer Jersey to progress critical works up to the closing of the infrastructure investment agreement.
CIOH has continued to invest further amounts as required in order to achieve the closing of the investment agreement for the port and the rail infrastructure.
Write to Adam Orlando at Mining.com.au
Images: Rio Tinto
