Western geopolitical operatives in the commodities markets are bracing for the market-moving entrance of iron from a new resource deposit, which was officially launched on Nov. 11 from Guinea’s $23 billion Simandou mining project. The Simandou reserve, located deep within the West African jungle of southeastern Guinea, is considered the world’s largest untapped deposit of iron ore, with its high-purity iron ore sitting close to the surface. Far larger operating iron mines exist in Australia (Mt. Newman), Brazil (Carajás), and Bolivia (Mutún), among others.
As welcome as this development is to the African world, it has been the target of the geopolitical forces, since the majority of the new ore will not go to the collapsing West, but to China. “The size and richness of the deposit means the start up at Simandou threatens to further tilt the power dynamics of the market” in favor of China, Bloomberg wrote on Nov 3.](https://www.bloomberg.com/news/features/2025-11-03/china-s-massive-iron-mine-in-africa-threatens-to-upend-a-market)
International players in Simandou’s four blocks include Rio Tinto, the world’s largest mining operation; Winning Consortium Simandou (WCS), a global shipping firm based in Singapore; and Vale Mining, the world’s third-largest mining concern, based in Brazil. The two major Chinese companies involved are the Chinese Aluminum Corporation, Chinalco; and Baowu, the world’s largest steel company. Chinalco has the added advantage of having run Guinea’s bauxite operations (in the north), for which they also built a railroad. Currently, Baowu Steel Group holds the largest shareholding in the WCS consortium and has the rights to the primary (northernmost) blocks 1 and 2, while Chinalco is partnered with Rio Tinto on blocks 3 and 4, about 70 km to the south.
One of the biggest challenges in accessing the Simandou reserve is its remoteness, buried so deep in the West African jungle, that—despite 400 years of prying colonial eyes—the reserve was only “discovered” in the 1950s. Simandou stretches for over 100 km, and holds 2 billion (some say 3 billion) tons of ore. Long ago the Guinean government divided the reserve into four physical “blocks,” and decided that—although it would be easier, shorter and cheaper to take the ore out via a third country—Guinean ore should remain in Guinea until it is loaded onto ships. That made the construction of both a 650 km railroad—and port—necessary.
The sheer physical feat of constructing 650 km of railway through virgin jungle, in what some consider record time is, in addition to being a testimony to the industriousness of the Chinese, also evidence as to how far they have advanced and effectively “standardized” the construction of SGR rail lines. In addition to 300 bridges of unknown height and length, the project also involved construction of 20 km of tunnels, all of which had to be built consecutively, as the rail line advanced. While it cannot be considered “high speed,” (trains will reportedly take an estimated 30 hours to get to the Forécariah port), the line is also reportedly double-tracked, and thus easily capable of accommodating a growing traffic flow. While the SGR line was being built, the Chinese were also busy constructing the port.
There was one last attempt to subvert the project in 2022, involving the creation of an alternative route to take the Simandou ore out through Liberia, short-circuiting the Chinese rail investment with a shorter 400 km direct line from the mine, southwest to the existing port at Buchanan. But that proposal did not prosper. Now Baowu is reportedly consulting with local authorities about building a steel plant in Guinea.
