The former BSG Resources (BSGR) mine has piqued the interest of Niron Metals, led by former Xstrata executive Mick Davis.
The BSGR deal is reportedly the foundation for an efficient mining partnership between Niron and the Guinean government to develop the Zogata iron ore basin.
The legal disputes between BSGR and the first and second blocks of Simandou must be settled beforehand. The development of the ore deposit could not be started due to lawsuits and the need to invest $ 23 billion in creating the infrastructure of the deposit.
The Zogata project is expected to yield 2 million tonnes per year of the main raw material for metallurgical enterprises.
45% of shares in the third and fourth blocks of Simandau are still owned by Rio Tinto - the world's second largest supplier of iron ore raw materials.
The Republic of Guinea is asking a new group of investors from Steinmetz to expedite the start-up schedule for the Zogata mine. The transportation of raw materials will presumably be carried out through the ports of neighboring Liberia or the own ports of the Republic of Guinea.
Davis has a good reputation. His core business is transforming Xstrata from a half-billion-dollar company to a corporation that offered to take over Anglo American.
