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Simandou South, Guinea


Simandou presents an unprecedented opportunity for Guinea to use its natural resources for long term economic growth.  As a development institution IFC has a unique mandate to support the sustainable development of country changing projects such as Simandou. As a partner in the project, IFC is uniquely placed to monitor the environmental and social management of the project, play the role of a neutral broker, draw on our global experience in areas such as local supplier development and help mobilize the vast amounts of funding (estimated at $20 billion) that will be needed to complete this complex project. 

 

IFC & Simandou

 

  • IFC has been involved in Simandou since 2006 when we acquired a five percent stake in the project.  Our investment to date totals $185 million.  We currently hold  a 4.6% stake.
  • IFC is actively involved in all aspects of the project; our roles to date have included working closely with our partners to ensure environmental and social compliance with our performance standards, and to finalize the Investment Framework.
  • We have also been working with Rio Tinto on a program to build the capacity of local firms to supply the project with goods and services and further spread the economic benefits of the project. The program has generated over $9 million in local contracts and trained 1400 people in Guinea representing 400 local businesses.
  • Going forward, we expect to also play a role in mobilizing the significant amounts of financing that will be required to build the project.

 

Economic Impacts of Simandou

 

  • The benefits of Simandou will extend beyond the project itself as its success will pave the way for other investments in the country.
  • Simandou is expected to generate more than 10,000 jobs during project development, and once operational will pay over $1 billion in taxes/royalties per year to Guinea and spend $2 billion on suppliers with a focus to source as much in the country as possible.
  • In 2012, Simandou employed over 4,500 people (including 3,600 Guineans) and paid over $160 million to 500 Guinean businesses for goods and services.
  • A 650km railway through Guinea will carry freight and passenger services in addition to iron ore and minerals haulage. A deep water port will accommodate the largest ships to have ever docked in Guinea and will support complementary trading activity including agriculture.

 

 

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