4 Central Enterprise Groups Consortium Africa Open Iron Mine

According to Chinalco, on November 28, a Chinese consortium of Guinea’s Simandu project, jointly organized by Chinalco, Baosteel Group, China Railway Construction Corporation, China Harbourview and Central Africa, was established. The consortium will jointly promote this Development of the world's most potential untapped mines.

In general, the development and mining of an iron ore project is only the core of the project. The construction of supporting infrastructure such as ports and railways is a key factor affecting the project's production. The group cooperation of overseas resource development of Chinese enterprises will undoubtedly form a concerted effort to speed up the project production.

Ximendou Mining Co., Ltd. is located in Guinea, West Africa. It has controlled and inferred reserves of 2.4 billion tons of iron ore according to the Australian Joint Ore Reserve Committee (JORC) standard. The estimated total resources are close to 5 billion tons and the overall ore grade of the project ranks among the top in the world. After the project is put into production, it will significantly increase the global supply of iron ore, effectively alleviate the tight supply of iron ore in China, and have important strategic significance for improving the level of iron ore resources in China.

This was originally a project of Australia’s Rio Tinto Group, one of the world’s three largest iron ore giants. On July 29, 2010, Chinalco’s listed flagship Chinalco and Rio Tinto signed a legally binding agreement on the Ximandu Iron Project. The Simandou joint development agreement, the two sides set up a joint venture to jointly develop Simandu project.

The Chinese consortium was formed by Chinalco through a joint development agreement signed with Rio Tinto and jointly established several Chinese companies for joint investment in the Simandou project in Guinea. Chinalco Iron Ore Holdings Co., Ltd. is the platform for the Chinese consortium to invest in Guinea’s Simandu project. It is controlled by China Aluminum Hong Kong Co., Ltd. and is mainly responsible for the investment in Simandu project, participating in the management of the project construction period, and being responsible for the Chinese rights and interests ore. Sales and so on.

Voices SASAC Opens New Mode for Overseas Development

Xiu Weiping, general manager of Chinalco and chairman and chief executive officer of Chinalco, said that the establishment of the Chinese Consortium marked that the Ximandu iron ore project has entered a new phase of accelerated development and a number of central enterprises have been established to jointly establish the project. The new model of the Commonwealth.

Huang Danhua, deputy director of the SASAC, said that the four central SOEs and China-Africa joint ventures have jointly developed overseas, enhanced the ability of Chinese enterprises to operate internationally, and created a new model for Chinese companies to develop overseas project cooperation.