China’s Baowu takes control of Simandou iron ore operator

China’s Baowu Resources, the world’s largest steelmaker, has tightened its grip on one of the biggest untapped high‑grade iron-ore deposits by taking control of the operator of Guinea’s Simandou Blocks 1 and 2 after raising its stake in the Winning Consortium Simandou to 51% from 49%, the company said on Friday.

The Singapore-registered parent company and its Guinean unit have been renamed Baowu Winning Consortium Simandou following the deal, the statement said. It was approved by Guinea on May 30, 2024 and formally completed on January 30, 2026.

BWCS owns 85% of the Guinean operating company for Blocks 1 and 2, strengthening Beijing’s leverage over Simandou in a country that also exports bauxite and other minerals.

On the southern Blocks 3 and 4, Chinese state groups also hold stakes via a Chinalco-led joint venture alongside Rio Tinto and the Guinean state in the Simfer partnership.

Simfer co-developed shared rail and port infrastructure with BWCS for Simandou, which debuted iron ore shipments in November after nearly three decades of stop-start development, regulatory disputes and infrastructure delays.

Baowu said the deal confirms its long-term industrial and strategic commitment to “one of the world’s most significant integrated mining and infrastructure projects,” adding it will pursue “project competitiveness, the promotion of local content, (and) compliance with internationally recognized ESG standards.”

At full-run rate, Simandou’s two mining hubs are designed to ship up to 120 million metric tons of high-grade iron ore a year through the shared rail and Atlantic port, positioning Guinea as a key supplier of the steelmaking material alongside Australia and Brazil.

Guinea’s mines ministry did not immediately respond to a request for comment.

Guinea is also the world’s largest bauxite exporter, with Chinese firms controlling over 70% of output.

(By Maxwell Akalaare Adombila; Editing by Louise Heavens and Chris Reese)