iron gripAn opaque tendering process is likely to lead to the extension of China’s African resource interests at the Simandou North iron ore project in Guinea. The workings of the tender remain “far from best practice”, Verisk Maplecroft analyst Eric Humphery-Smith argues in a note. SMB benefits from access to Chinese state financing, as well as established shipping capabilities and buyer networks in China. Simandou is one of the world’s richest reserves of high-grade iron ore, with an estimated 2 billion tonnes. Bottom Line: Chinese state backing and opaque politics means that dice are loaded against competing mining majors in Guinea.

Source: The North Africa Journal October 18, 2019 13:41 UTC