—As Guinea’s junta touts opening of mining megaproject
Vast Simandou complex has 2.8bn tonnes of iron ore deposits, but many worry about its environmental cost
Deep in the south of Guinea lies Simandou, an impressive mountain range with a lucrative underbelly: the world’s largest untapped iron ore deposits, amounting to an estimated 2.8bn tonnes.
In 2013, it was at the centre of one of the biggest mining financial scandals in history, stemming from an ownership tussle over development licenses awarded in the 1990s during the regime of the west African country’s former authoritarian president Lansana Conté .
For years, various start dates have been touted for production, but a series of political upheavals and the reassigning of licences have stymied progress.
According to Guinea’s ruling junta and the site’s new owners, all that will change later this year with the planned opening of a vast new complex that has been touted by its supporters as a gamechanger for the country, where mining already accounts for 90% of exports.
“This mining project must be for Guinea what oil was for the Gulf,” Ismaël Nabé, the minister for planning, said in an interview in November.
The ambitious plan for the site includes a 650km (400 mile) railway from the mine to three deep seaports under construction, a metallurgical plant and 10,000km of asphalt by 2040. Authorities say the $20bn (£15.4bn) investment will yield an estimated 60,000 jobs and help finance education for millions of children in a country where two-thirds of the population live on less than £2 a day.
On the Guinean presidency’s YouTube account, several high-budget videos proclaim Simandou 2040 – as the megaproject has been christened – a “bridge to prosperity”. Given its superior ore grade and production capacity, industry observers have even called it “Pilbara killer” on the grounds that it will eventually displace Australia’s Pilbara region as the world’s largest iron producer.
In January, American rail technology providers Wabtec signed a $248m deal to bring in locomotives for the dual-track railway to connect the proposed mine to the Atlantic.
https://a877552ce0e3c4001e710342ac1805a1.safeframe.googlesyndication.com/safeframe/1-0-41/html/container.html But while reports in Guinea suggest that the first beam has been laid, key sections of the railway are not ready and other supporting infrastructure projects are far from completion, casting doubt on October’s proposed start date for production.
Other concerns common to mining projects – around financing, safety and the environment – are also at play.
After Guinea’s September 2021 coup, the ownership structure for the megaproject became more complex. Two of the site’s four mining blocks are owned by a consortium consisting of the Anglo-Australian mining organisation Rio Tinto, a Chinese holding company and the Guinean state. The other two are being developed by a Singapore-based consortium.
Many in civil society and the opposition allege that details of the financing for the deal have been shrouded in secrecy. “There is no transparency in the Simandou project,” said Mamoudou Diallo, an activist and journalist who claims only a few members of the ruling junta are aware of key project details.
In 2007, Guinea joined the Extractive Industries Transparency International (EITI) as part of a commitment to improve good governance in the sector. But while the country has made substantial progress in publishing data on revenues received and paid, recent contracts relating to the Simandou mining concession have not yet been made public, said Joanne Jones, the communications and strategy director at EITI. “We strongly urge publication of contracts associated with the project,” she added.
https://a877552ce0e3c4001e710342ac1805a1.safeframe.googlesyndication.com/safeframe/1-0-41/html/container.html Last July, two people died as the army quelled a protest by local people in Beyla, a district at the heart of the project, who claimed subcontractors weren’t recruiting fairly. On Wednesday, Reuters reported that six local workers were killed between June 2023 and November 2024 in accidents on the project. In all, the report said, there had been more than 40 undisclosed accidents since construction on the megaproject began. The government told the news agency it was investigating the deaths.
Authorities have spoken about how there will be lower carbon emissions in steelmaking owing to higher quality of the iron ore. But in villages like Diala and Diarakendou, local people say solid waste from the construction is polluting the area and claim the companies are not acknowledging their complaints.
“There are many villages that I travelled through where the impacts are visible,” said Diallo, who has done investigative work in some of these communities. “Citizens are even complaining that evacuation canals have been drained towards fields, in particular rice fields and water sources.”
The Guinean ministry of environment and sustainable development was approached for comment.
Bright Simons, the vice-president of research at the Imani Centre for Policy and Education in the Ghanian capital, Accra, said the involvement of two consortiums had complicated the timeframe for opening the site.
“Production this year is out of the question,” he said, owing to the need for each consortium to coordinate on infrastructure development. Simons added that in particular he was yet to see a full commitment to accelerating funding for the rail element of the project.
On social media, some Guineans joke about the launch date and recruitment of influencers to endorse the project. And among the Guinean opposition, fanfare around Simandou 2040 is seen as an attempt to generate campaign footage in the run-up to as yet unannounced elections that the junta leader, Mamady Doumbouya, is expected to contest.
“Apparently the 2025 timeline for Simandou production is a political timeline,” Simons said. “The companies were told by Doumbouya to start this year or face consequences. The plan is thus to play along with the messaging and do some show activities from mid-year. But serious analysts don’t expect credible production to begin before 2028.” Courtesy of the UK Guardian Newspaper
Here in Liberia, for nearly four years, the government of Liberia is yet to sign the second Mineria Development Agreement for its largest foreign Investment ‘ArcelorMittal’, sparking uneasiness.
Last week, ArcelorMittal celebrated 20 years since it signed the first MDA with rhe government of Liberia, promising an additional Invesment of 2.5 billion dollars. ArcelorMittal is the largest employer in the private sector of Liberia, with over 3,000 Liberians directly working with the company and over 5,000 Liberians working with ArcelorMittal subcontracting companies. AML’s patronage of local businesses continues to create additional opportunities and contribute to our communities’ economic viability. The company is also the single major contributor to our country’s revenue through taxes, royalties, and other financial obligations. Thus, contributing to the payment of civil and public servant salaries and other socio-economic development drives of our country.”
The new MDA will create over 5,000 direct and indirect new jobs, which will reduce unemployment in our host communities and our county. We have urged the company’s leadership that we need to benefit more from their operations, as we cannot be cooking and be hungry. We also hear in the new MDA that the County Social Development Fund will increase; the government of Liberia will collect $200 million every year from the company; and many other things to benefit. We are happy for all of this good news from ArcelorMittal Liberia.”
“The company has been fixing community roads, and we are grateful for the construction of the Ganta to Sanniquellie road which the company has paved. We want them to reach it to Yekepa finally. While we support the ratification of the amended Mineral Development Agreement (MDA) and extension of ArcelorMittal Liberia’s investment, we call on the Government of Liberia to ensure the following concerns or recommendations are fully factor in the negotiation process with ArcelorMittal:
- Social development fund should be increased proportionally to the increase in the tonnage of ore that would be mined during the expansion.
- All of the money for community development funds paid by ArcelorMittal should be deposited to a separate account for local development, particularly, in the impacted communities with signatories as follows: Chairman of District development council, county finance officer, Rep of AML.
- The government should ensure that other companies make use of the railway as well, but that ArcelorMittal who is operating in Liberia should be given preference.
- AML should operationalize the Gbapa clinic which they helped us to construct, and they should embark on a mobile clinic initiative in all the impacted communities to treat our sick people.
- AML should establish an agriculture project in all the impacted communities in Nimba.
- Establish and support entrepreneurship and business skills development in each of the impacted communities in Nimba.
- AML should be particular about granting more scholarship opportunities to host communities’ students to pursue vocational, technical training, and higher education.
- In addition to the Yekepa Vocational Training Centre, AML should establish and operate another two Vocational and Technical Training Centres in impacted communities.
- Develop and enforce a robust local content regime with priority given to businesses, NGOs and individuals from host communities and counties.
- The government should establish MDA compliance monitoring team that includes representatives from impacted communities. The team will monitor the implementation of the MDA, provide an annual independent report and ensure AML is in full compliance.
- Ensure measures are in place to safeguard against and monitor environmental degradation and pollution, water pollution and blasting impact.
- Revisit and augment the resettlement package, strategy, and payment system.
- AML should continue to support the Nimba County University Geology Department and extend similar support to the University Vocational Training Program and sponsor students from impacted communities to enroll in the program.
- AML should design and implement an employment program to further enhance opportunities for residents in host communities. 50% of unskilled jobs should be given to residents of host communities, and 25% of skilled jobs should be reserved for the citizens of Nimba County. And the whooping 75% of jobs can go to other citizens of our country. This is not an unrealistic request. We are a fair and nationalistic people.
- Provide support to community-driven and -initiated projects and programs.
- Expand and double the enrolment capacity of Yekepa Vocational Training Centre with host communities directly benefiting enrollment
- Improve infrastructure development of Yekepa, build new housing units and renovate existing buildings that are not occupied.
- Support volunteer teachers and health workers assigned in host communities by providing monthly allowance and rice
- Provide three quarterly supports to temporary employment programs and projects through the office of the county superintendent for impacted communities.
- With the suspension of USAID operations, AML should immediately commence support for health programs in impacted communities and counties with a focus on sexual and reproductive health, HIV/AIDS, maternal and child health, infectious disease detection and surveillance, etc.
- The government must ensure 60% of land user fees go directly to the affected communities and that a portion of taxes and royalties paid by AML go to Nimba County in line with Community Land Rights Act and the local government act.
- Construct water supply systems in all impacted towns and communities
- Based on facts and advice from EPA, AML and the government must work to safety concerns ( relocation) of Zolowee Town, Bonala, and Bolo.
- AML must recondition all public schools in the affected communities, considering the 22 impacted communities including all towns and villages sin Yarmein, Seh and Zor as well implement a welfare Scheme for Elders 60 years above, and provide administrative support to local government authorities.
- AML should provide support for the layout and pavement of streets in Sanniquellie.”
“To the government of Liberia, please hear us. We are the custodians of the mine which ArcelorMittal Liberia is taking the iron ore from.”
