The Simandou project. Source: Rio Tinto
There are several exciting African iron ore projects in the pipeline, some of which are being driven, in part, by Australian companies.
In late July, Rio Tinto inked a joint venture with Winning Consortium (WCS) to advance the Simandou iron ore project in Guinea, which has the potential to produce more than 100 million tonnes of iron ore each year.
Fortescue Metals Group last week signed an ‘exploration convention’ with the Gabon Government regarding the development of the Belinga iron ore project in the central African nation.
The exploration convention grants Fortescue exploration licences covering approximately 4500 square kilometres and access to previous work and data relating to Belinga, and envisages an exploration program of approximately $US90 million ($130.4 million) over three years.
So why are Australian mining companies so keen on African iron ore?
While South Africa, Mauritania and Algeria control the lion’s share of iron ore production in Africa, the continent is known for possessing many untapped iron ore deposits.
North African iron ore reserves are concentrated in the Atlas Mountains and the western Sahara, while there are also significant deposits in western Africa, including in Liberia and Nigeria, to go alongside Guinea, Gabon and Mauritania.
South Africa owns much of the iron ore reserves in the southern part of the continent, with deposits in the Bushveld complex – which contains the world’s largest reserves of platinum group elements (PGEs) – and at Thabazimbi and Pretoria in the country’s north-east.
Zimbabwe also holds significant iron ore reserves, led by the giant Mwanesi mine located in central Zimbabwe.
There are plenty of resources being allocated to drive investment and stimulus in Africa.
The Africa Transformation and Industrialisation Fund (ATIF), alongside which Fortescue is working to explore Belinga, has been established to provide solutions for problems impeding African development.
ATIF is fostering sustainable industrialisation in Africa, ensuring there is a greater trade balance between imports and exports.
China has also been a keen investor of African mining and development. The Simandou project is strongly backed by Chinese enterprises, and China has not been shy in voicing its desire to further diversify its iron ore supplies.
With so much momentum behind the African iron ore story, it’s no surprise Australian companies want a piece of the pie.
Source link : https://www.australianresourcesandinvestment.com.au/2022/08/22/simandou-and-belinga-why-australia-wants-in-on-african-iron-ore/
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Publish date : 2022-08-22 07:00:00
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