US-based Wabtec Corporation has landed a US$248mn contract to supply locomotives for a rail line that will support a high-grade iron ore project in Guinea
The New York-listed group won the order from Winning Consortium Simandou (WCS), a Baowu & Winning joint venture, to support its rail operations to the mine site, which is located in the east of Guinea.
The agreement follows a locomotive order a few months earlier from SimFer, a Rio Tinto joint venture, to serve its operations at Simandou.
The combined orders for the project, valued at more than US$500mn, represent one of Wabtec’s largest international locomotive agreements in recent years.
“As the world’s largest untapped high-grade iron ore deposit, Simandou represents a transformational economic opportunity for Guinea, and Wabtec’s commitment extends beyond delivering advanced locomotive solutions to ensure the success of this critical initiative in partnership with WCS and SimFer,” said Wabtec’s regional vice president of sub-Saharan Africa, Mpilo Dlamini.
“We are also committed to the development of Guinea by fostering local employment, developing indigenous talent, and empowering local businesses to support the operation and maintenance of this vital rail network.”
Wabtec will supply its Evolution Series ES43ACmi locomotives, a dual-cab locomotive with a 4,500HP Evolution Series engine. The locomotive provides exceptional fuel efficiency and proven performance in harsh, high-temperature environments, like eastern Guinea.
It is also capable of meeting UIC 3a and the U.S. Environmental Protection Agency’s Tier 3 emission standards.
The company will begin delivering locomotives for the Simandou project in 2025, when first production from the mine is also expected.
“This locomotive order with Wabtec is another important milestone for the Simandou project,” said WCS CEO Zhang Cheng. “As work continues to build the TransGuinéen railway, we will have the equipment resources in place that support the high international standards that we’ve committed to deliver.”
The 600-km TransGuinéen Railway is under construction to connect the Simandou mine and the Port of Morebaya. The Simandou mountain range, located in the southeast of Guinea, contains the world's largest untapped reserve of high-grade iron ore. WCS is developing blocks 1 and 2 of the Simandou iron ore deposit, which currently account for more than 1.8bn tonnes of estimated reserves.
Rio Tinto also expects to commence production this year through its Simfer joint venture, which holds rights to blocks 3 and 4. After first output from the Simfer mine this year, production is expected to ramp up over 30 months to an annualised capacity of 60mn tonnes per year. The mine will initially deliver a single fines product before transitioning to a dual fines product of blast furnace and direct reduction ready ore.
Simfer's capital funding requirement for the Simandou project as a whole is estimated to be approximately $11.6 billion, of which Rio Tinto's share is approximately $6.2bn.
Read more: US$15bn Simandou project closes in Guinea