World Bank Group has called on the Guinean Government to deploy revenues generated from its massive Simandou iron ore reserve towards economic diversification and sustainable development, Bloomberg reports.
Speaking at a signing ceremony in Conakry, World Bank Vice President for Western and Central Africa Ousmane Diagana emphasised that Simandou presents a ‘historic’ opportunity to serve as an “economic turning point” for the West African nation.
“The question we must ask ourselves is not just how much ore Guinea will export, but how many jobs, investments, and new economic opportunities Simandou will help create,” Diagana said.
The World Bank official spoke during the signing of US$320.8 million ($460 million) in support for Guinean agriculture, energy, and tax administration. The funds form part of a broader US$3 billion country partnership spanning 2027–33.
The partnership agreement coincides with Guinea’s Simandou 2040 national development plan, which targets US$300 billion in multi-sector investment by the end of the next decade.
Minister of Economy, Finance, and Budget Mariama Ciré Sylla noted that while the deposit has entered production, the stakes extend beyond mineral exploitation.
“The ambition is to transform this wealth into sustainable shared prosperity, by creating added value in Guinea, developing our production and processing capabilities,” Sylla said.
Simandou commenced production in November, shipping 6.8 million tonnes of iron ore during the first half of this year.
Blocks one and two are controlled by the Baowu Winning Consortium Simandou, which is backed by Chinese entities including China Baowu Steel Group. Rio Tinto (ASX:RIO) and Aluminum Corporation of China, known as Chinalco (SHA:601600), own blocks three and four.
The Government of Guinea retains a 15% stake in each mining entity, along with a separate 15% interest in the infrastructure company managing the project’s rail and port assets.
According to the International Monetary Fund, mining activities are expected to drive Guinea’s economic growth to 8.7% this year and 9.3% next year, up from 6.7% in 2025. However, the World Bank estimates 2025 unemployment and poverty rates at 5.2% and 33%, respectively.
Write to Paula Fabe at Mining.com.au
Main image: Rio Tinto
