Chinese construction equipment manufacturer Xuzhou Construction Machinery Group (XCMG) has signed an agreement to supply equipment to the Simandou iron ore project in Guinea.

Simandou is the world's largest untapped reserve of high-grade iron ore. Rio Tinto SimFer is a joint venture between the Government of the Republic of Guinea, Rio Tinto, and China’s Chalco Iron Ore Holdings.

The deal involves the supply of a comprehensive suite of core mining equipment valued over US$110 million, including over 34 units of 230-tonne mining trucks and over dozens of large mining graders with 350- and 550-horsepower ancillary equipment and large production loaders and excavators.

“The Simandou project can be a key driver of growth in Guinea – catalyzing a new wave of investment, building the country's entrepreneurial fabric and supporting development across the country,” says Aboubacar Koulibaly, head of Rio Tinto Guinée. “Through the promotion of local content and investment in local communities – both of which are embedded in this contract award – we can unlock the project's full transformative potential.”

At the signing in the Guinean capital Conakry, XCMG also entered into a global cooperation framework agreement with Rio Tinto.

Located in the southeast of Guinea, the Simandou mountain range is home to some of the highest-grade iron ore in the world, making it globally significant in international mineral markets.

The US$15 billion project is the largest greenfield integrated mine and infrastructure investment in Africa to date. Watson Farley & Williams has been advising the Republic of Guinea. All the required Guinean and Chinese regulatory approvals have been signed.

The Simandou project includes the construction and operation of a 600-kilometre, multi-use railway line connecting the blocks to a newly constructed state-of-the-art mineral port to export up to 120 million tonnes of iron internationally.

The Compagnie du Transguinéen (CTG) joint venture consortium will own and manage the rail and port infrastructure, and has already signed the first locomotive order to service the project.

CTG is comprised of the Republic of Guinea, Baowu Group (leading a consortium of Chinese steel manufacturers and other investors), Simfer Jersey (a joint venture between Rio Tinto and a consortium led by Chalco Iron Ore Holdings) and WCS (a consortium comprising the Winning International Group, China Hongqiao Group, Guinean mining logistics company UMS, and China’s Yantai Port Group).