Rio Tinto has finalized a significant equipment agreement with China's Xuzhou Construction Machinery Group (XCMG) for its Simandou iron ore project in Guinea. The cooperation agreement was signed in Conakry by XCMG's Vice President Liu Jiansen and Chris Aitchison, General Manager of Simfer Jersey Limited, marking a crucial step in the development of what is set to be the world's largest untapped iron ore deposit.
Under the agreement, XCMG will provide a comprehensive range of mining machinery, including dozens of XDE240 diesel-electric drive mining trucks and large mining graders, with the total contract valued at approximately $110 million. This partnership builds on a history of collaboration between the two companies, which began in 2014 with the provision of hydraulic cylinders for Rio Tinto's operations in Australia.
The deal is expected to enhance local employment and skills development in Guinea, with both companies expressing commitment to supporting community development through training programs and increased job opportunities. Rio Tinto's project in Simandou aims to significantly contribute to Guinea's economic growth by developing essential infrastructure, including a 552 km rail line and a deep-water port, facilitating the export of up to 120 million tonnes of iron ore annually once fully operational by 2025.
