China’s Xuzhou Construction Machinery Group (XCMG) entered an agreement with Rio Tinto’s Simfer to supply equipment for its Simandou iron ore project in Guinea, according to a Reuters report.
XCMG, headquartered in Xuzhou city, will provide core mining equipment with a total value of about 800 million yuan, or US$111.91 million. The fleet includes dozens of 230-metric ton mining trucks, per the news wire.
The Simandou project, located in southeast Guinea, is set to be the world’s largest and highest-grade new iron ore mine, with an annual production capacity of 120 million metric tons. It is projected to come online in 2025.
Simfer is a joint venture between Rio Tinto, Chalco Iron Ore Holdings and the government of Guinea.
Source: Reuters, China’s XCMG signs deal with Simfer for giant Simandou iron ore project – MarketScreener