Simfer Iron Ore Project Feasibility Study: $4.60B Capex
Rio Tinto's Simfer Iron Ore Project in Republic of Guinea, Simandou South mining concession (blocks 3 & 4) has a Feasibility Study outlining initial capital of $4.60B.
Rio Tinto's Simfer Iron Ore Project has reported Feasibility Study results for the iron ore project in Republic of Guinea, Simandou South mining concession (blocks 3 & 4). It reflects Rio Tinto's (RIO) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $4.60B. Economics are based on 65% Fe Fines price of US c136.10/dmtu CFR China (average of CRU and Wood Mackenzie forecasts).
Production and mine plan. The project envisions an open-pit operation. Average annual production is approximately 60 Mtpa iron ore fines (dry). Average head grade is 65.3% Fe (marketable product).
Resources and ownership. The company holds a 45.05% interest in the project.
These figures are extracted from Rio Tinto's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 123 Mt | 66.4% Fe, 1.0% SiO2, 1.2% Al2O3, 0.07% P, 2.5% LOI | — |
| Probable | 552 Mt | 65.0% Fe, 0.9% SiO2, 1.8% Al2O3, 0.10% P, 3.9% LOI | — |
| Total | 675 Mt | 65.3% Fe, 0.9% SiO2, 1.7% Al2O3, 0.09% P, 3.6% LOI | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 66 Mt | 67.1% Fe, 1.9% SiO2, 1.1% Al2O3, 0.04% P, 1.0% LOI | — |
| Indicated | 198 Mt | 66.2% Fe, 1.8% SiO2, 1.5% Al2O3, 0.05% P, 1.8% LOI | — |
| Measured & Indicated | 264 Mt | 66.5% Fe, 1.8% SiO2, 1.4% Al2O3, 0.05% P, 1.6% LOI | — |
| Inferred | 340 Mt | 65.8% Fe, 1.4% SiO2, 1.4% Al2O3, 0.07% P, 2.8% LOI | — |
Our Analysis
- Initial capex
- $4.60B
costlier than 97% of 481 projects we track
- Study price assumption
- 65% Fe Fines price of US c136.10/dmtu CFR China (average of CRU and Wood Mackenzie forecasts)
Simandou South sits in the middle of the pack on returns, not at its head. Against the 481 projects we track across all commodities, its economics rank in the second quartile: respectable, unremarkable, and entirely dependent on how you read the jurisdiction. That is the honest starting point. A second-quartile iron ore project in the Republic of Guinea is not the same proposition as a second-quartile project in a mature mining jurisdiction, and the gap between those two readings is where the investment case is actually decided.
The build itself is not the problem. Initial capex of $4.60B is lower than 3% of the 481 projects we track, and against a company market cap of US$153.54B it is a rounding error on the balance sheet. This is one of 42 projects in a diversified portfolio, so Simandou South is a line item, not a bet-the-company commitment. Funding risk, the constraint that kills most development-stage projects, is close to absent here. That is the sharpest signal in the file.
What remains is the study's own price assumption: a 65% Fe Fines price of US c136.10/dmtu CFR China, an average of CRU and Wood Mackenzie forecasts. The returns should be read as a sensitivity to that forecast rather than as a fixed outcome, because the whole case rests on it. The feasibility study carries a plus or minus 15% band, the tightest estimate available at this stage, and it deserves the weight that implies. The question that decides this project is not whether it can be financed. It is whether that forecast holds through construction in Guinea.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.