We’ve seemingly been waiting forever for Rio Tinto plc’s Simandou iron ore mine in Guinea to get going – from the commodity boom of the early 2000s to 2011 when Rio and Guinea’s government worked out a new deal, to now.
And it looks like we’ll have to keep waiting.
“The production date will come out to be what it will be, once the investment framework is concluded and the financing is in place,” Alan Davies, head of Rio’s diamonds and minerals division, who is also responsible for Simandou, told Reuters recently. “Our current estimate is that if everything goes extremely well and rapidly production would be around 2018.”
Simandou is thought to be one of the world’s largest untapped iron ore resource, but politics and infrastructure have been major barriers to Rio Tinto’s efforts there.
Today’s Iron Ore and Steel Prices
Chinese steel and raw materials prices were flat for the day. The prices of iron ore 58% fines from India remained in relatively the same range as last week.
The price of Chinese HRC was essentially unchanged. The price of Chinese coking coal held steady.
Also on the LME, the steel billet cash price showed little movement last Friday, hovering around $145.00 per metric ton. On the LME, the steel billet 3-month price saw little change in its price last Friday at $170.00 per metric ton.
The US HRC futures contract 3-month price saw essentially no change for the fifth day in a row, remaining around $628.00 per short ton. The spot price of the US HRC futures contract showed little movement last Friday at $645.00 per short ton.