China's Baowu Resources, the world's largest steel producer, has strengthened its control over one of the world's largest undeveloped deposits of high-quality iron ore, taking control of the operator of blocks 1 and 2 of the Simandou project in Guinea after increasing its stake in the Winning Consortium Simandou from 49% to 51%, according to Reuters.
It is noted that after the deal was concluded, the parent company registered in Singapore and its Guinean division were renamed Baowu Winning Consortium Simandou. The agreement was approved by the Guinean authorities on May 30, 2024 and formally finalized on January 30, 2026.
BWCS holds an 85% stake in the Guinean operating company of Blocks 1 and 2, which strengthens Beijing's influence over Simandou in a country that also exports bauxite and other minerals.
In southern blocks 3 and 4, Chinese state-owned groups also have stakes through a joint venture led by Chinalco together with Rio Tinto and the State of Guinea under the Simfer partnership.
Simfer, together with BWCS, has developed a common railway and port infrastructure for Simandou. The project's iron ore shipments began in November after nearly three decades of intermittent development, regulatory disputes and infrastructure delays.
Baowu said the agreement confirms its long-term industrial and strategic commitment to "one of the world's most important integrated mining and infrastructure projects," adding that the company will focus on "project competitiveness, local component development, and compliance with internationally recognized ESG standards."
When fully operational, the two Simandou mining clusters will be able to ship up to 120 million tons of iron ore per year via the joint railway and the Atlantic Port, making Guinea a key supplier of raw materials for steel production along with Australia and Brazil.
