Simandou South submits first version of the Infrastructure Bankable Feasibility Study

11 January 2016

Simandou South submits first version of the Infrastructure Bankable Feasibility Study

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Conakry – On 31 December 2015 the Simandou South Project submitted the initial bankable feasibility studies for the Simandou rail and port infrastructure projects to the Government of Guinea.

Version 1 of the Rail and Port Bankable Feasibility Study reports (BFS) outline the initial assessments of the capital cost and construction schedule for the development of the rail and port elements of the Simandou South project and are based on submissions by leading Chinese construction contractors, China Railway Construction Corporation (CRCC),, and China Harbour Engineering Company (CHEC). Activities will now focus on the development of an integrated project schedule across these studies to refine and optimise the development plan for the project.

The Simandou Partners will meet with representatives from the Government of Guinea in January to review the first versions of the Rail and Port BFS together with the Mine BFS submitted by Simfer to the Government on 14 December 2015. The project partners will also review delivery of the Government’s State Enabling Activities which are essential for the development of the project.

Alan Davies, Rio Tinto chief executive of Diamonds & Minerals said, “I am pleased that the Simandou partners have delivered the initial versions of both the mine and infrastructure bankable feasibility studies within the agreed target dates, which are significant milestones in the development of this project. Combined together with the Government’s State Enabling Activities, they are fundamental to enable engagement with prospective investors.”

Bao Yu, president of Chinalco Iron Ore Holdings said, "The delivery of the initial rail and port feasibility studies by leading Chinese construction companies represent important milestones for the Simandou project. We expect that, enabled by leading efforts of the Rio Tinto team, the partners will continue to refine the studies, downsize the investment and enhance the project economics so as to deliver the final reports of high quality in May 2016.”

Delivery of the final Simandou South Project Bankable Feasibility Studies and the State Enabling Activities in May 2016 are essential catalysts for the formation of the independent Infrastructure Consortium who will fund and build the port and rail infrastructure. It is at this point that a final assessment of the technical and economic feasibility of the Simandou South Project be made.