Mining

Simandou partners celebrate start of operations

Guinea_Baowu_Resources_team_Simandou_railway_line

Guinea’s Simandou project enters the next stage (Image source: Baowu Resources)

One of the world’s largest mining and infrastructure ventures marked a milestone this week with the start of operations at Simandou in Guinea

The major project partners from the Chinese-led scheme, including WCS, Baowu, Chinalco as well as Rio Tinto, took part in a ceremony at the port in Forécariah prefecture to celebrate the launch of what is Africa’s largest greenfield integrated mine and infrastructure project.

WCS is a consortium between Winning International Group and Weiqiao Aluminium (part of the China Hongqiao Group) and United Mining Suppliers (collectively 51%) and Baowu Resources (49%).

“This milestone reflects years of hard work and strong partnership,” said Winning Consortium chairman Sun Xiushun. “Winning Consortium is proud to have delivered on our commitment and to stand with our partners in bringing Simandou into operation.”

The project is delivering more than 600 kilometres of new multi-use trans-Guinean rail together with barge and transhipment vessel port facilities.

Following commissioning and ramp up, this infrastructure will support the export of a combined total of up to 120 million tonnes per year of mined iron ore by SimFer and WCS from their respective Simandou mining concessions in the southeast of the country.

The Simfer joint venture comprises Simfer S.A., the holder of Simandou South Blocks 3 & 4, which is owned by the government (15%) and Simfer Jersey Limited (85%) — itself a joint venture between Rio Tinto and Chalco Iron Ore Holdings.

Chalco Iron Ore Holdings is a Chinalco-led joint venture of leading Chinese state-owned enterprises, including Chinalco, Baowu, China Rail Construction Corporation and China Harbour Engineering Company.

“The start of operations of the Simandou project is an important achievement guided by the consensus reached by the heads of state of the two countries, noted Chinalco’s president Wang Shilei.

“It reflects the joint efforts and pragmatic cooperation between China and Guinea, contributing to Guinea’s industrialisation and modernisation process.”

Shilei added that Chinalco is committed to working together with all partners to “fully implement the outcomes of the Summit of the Forum on China-Africa Cooperation in Beijing, advance the high-quality development of the Simandou iron ore project, take concrete actions to deliver on the Belt and Road Initiative, and promote the continued deepening of the comprehensive strategic partnership between China and Guinea.”

Testing and commissioning of the mine, rail and barge port system infrastructure is now underway, with both WCS and SimFer having commenced the transport of iron ore from mine gate to the port via the trans-Guinean rail line.

Once commissioned, all co-developed infrastructure and rolling stock will be transferred to and operated by the Compagnie du TransGuinéen (CTG), in which Simfer and WCS each hold a 42.5% equity stake, with the government holding the remaining 15%.

Rio Tinto’s CEO Simon Trott said the achievement has been made possible through the hard work of thousands of colleagues, and the complementary strengths and expertise of the company and its various partners.

“Today we are unlocking an exceptional new source of high-grade iron ore that is in demand from customers for low-carbon steel making, enhancing our world-class portfolio of iron ore mines in the Pilbara and Canada.”

Hu Wangming, chairman of China Baowu Group, added that the start of operations marks a “milestone” in the history of the global mining industry.

“Throughout the development process, all parties have maintained a broad perspective and a long-term vision, adhering to the principles of market orientation, rule of law, and internationalisation, ensuring the project’s advancement with high standards and high quality,” Wangming said.

“The stable supply of Simandou’s premium iron ore resources will provide a solid foundation of low carbon raw materials for the development of China’s steel industry and the global steel sector.”

Djiba Diakité, Minister and Chief of Staff to the President and chairman of the Simandou 2040 Strategic Committee, hailed the project as a “driving force” behind national transformation.

“This collective success reflects the vision of the head of state and the determination of an entire nation to build a future of shared prosperity. This inauguration marks a foundational milestone for Guinea, which now stands as a key player in sustainable development and economic sovereignty in West Africa.”

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Hitachi’s hybrid dump truck demo at SA mine

Hitachi powering change in South Africa's mines. (Image source: Hitachi)

Hitachi Construction Machinery and Hitachi Industrial Products have announced plans for a hybrid dump truck demonstration test project at a South African mining site, as part of an initiative of the United Nations Industrial Development Organisation (UNIDO)

The project was selected on 2nd November for inclusion in UNIDO’s industrial cooperation in the Global South through technology transfer from Japan programme.

Hitachi cites reductions in fuel costs and CO2 emissions that together will contribute to the development of the countries of the Global South through Japanese technology.

The hybrid dump truck will be working at an undisclosed mine site in South Africa’s Limpopo Province.

UNIDO is conducting the programme to promote technological innovation, strengthen supply chains and establish industrial infrastructure in Global South countries by supporting Japanese firms in conducting large-scale demonstrations, funded by Japan’s Ministry of Economy, Trade and Industry.

“Numerous pieces of mining machinery operate at mining sites, and most are powered by diesel engines,” the Hitachi companies said in a media statement.

“Diesel fuel is the primary cost factor in mine operations, and reducing fuel consumption has been a challenge for many years.”

In addition, it added, the CO2 emissions generated by dump trucks account for more than 50% of the total emissions from mining machinery in operation at mines in many cases, which makes reducing environmental impact an “urgent issue”.

To address these challenges, the project will manufacture a hybrid dump truck for demonstration testing based on an electrically driven EH4000AC-3 rigid dump truck that uses a diesel engine as its power source.

The demonstration truck will be equipped with an AC drive system manufactured by Hitachi Industrial Products, which operates using electricity generated by a diesel engine and electricity recovered through regenerative braking and stored in onboard batteries.

As part of the implementation, Hitachi Construction Machinery will provide training on the repair and maintenance of hybrid dump trucks to service personnel in South Africa, as well as locally transfer knowledge and conduct human resource development.

“Compared to the existing EH4000AC-3, the demonstration test dump truck reduces both fuel consumption and CO2 emissions by 10% or more, which helps reduce lifecycle costs and the environmental impact in mining operations,” the Hitachi statement added.

“In addition, the use of HVO (hydrotreated vegetable oil) may theoretically reduce CO2 emissions by up to 90%, which has the technical potential to accelerate decarbonisation efforts.”

Furthermore, it added, the ability to retrofit existing dump trucks into hybrid dump trucks will enable mining companies to effectively utilise the assets that they own and support the realisation of sustainable operations.

Hitachi Construction Machinery has also promoted the joint development and demonstration testing of full battery dump trucks to realise net zero emissions at mining sites.

“Hitachi Industrial Products will contribute to improving environmental performance — such as better vehicle fuel efficiency and reduced CO2 emissions — by adding service offerings that utilise battery power for AC drive systems in the existing installed base,” the company added.

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Ethiopia’s Tulu Kapi gold mine finance deal agreed

Construction of road to Tulu Kapi in 2025. (Image source: KEFI)

London-listed KEFI has closed a US$240mn debt financing to proceed with a pipeline of projects in Ethiopia, including the Tulu Kapi gold mine, as well as to pursue additional ventures in Saudi Arabia

The Tulu Kapi gold mine project will tap into power supplies from the recently-inaugurated Grand Ethiopian Renaissance Dam (GERD), the largest hydro-electric scheme in Africa.

The Ethiopian Electric Power Company is currently connecting the mine to the mains grid generation facilities at the dam, KEFI said in an update, which will include a new 132kV overhead power line via a substation at Gimbi town.

The maximum demand for the Tulu Kapi plant is estimated to be 15 MW, with a normal operating demand of approximately 10 MW.

An emergency diesel power plant will also be installed to provide backup power to start up and run the operation as insurance in case of any unexpected failure to deliver by EEPCO, according to KEFI, although it added that it does not expect to have to use the standby facility.

In a statement, the company noted that Tulu Kapi is the closest industrial-scale electricity consumer of the GERD, which it said was “excellent for reliability of low-cost green energy”.

The Tulu Kapi gold deposit was first discovered and mined on a small scale by an Italian consortium back in the 1930s.

KEFI executive chairman, Harry Anagnostaras-Adams, said the new debt offering has triggered further activity at the site ahead of full project development.

“With the gold price at a record high, this is the perfect time to be launching Tulu Kapi,” he said.

Mining contractors have been at site planning for operations in 2027, with the bulk earthworks — for an airstrip and other initial works — set to commence in early 2026 after the government has resettled households in the area.

The process plant contractor has also been at the site planning security and logistics for the delivery of components, which are currently being procured.

The US$240mn loan agreement was signed with the Africa Finance Corporation and the Trade and Development Bank.

KEFI has previously stated that the full development of the mine could be in the region of US$340mn, which means it must still raise a further US$100mn although some this is expected to come from a mix of equity, as well as support from the Ethiopian government.

During construction at Tulu Kapi, the company also hopes to enhance its portfolio of gold and critical material licences and applications elsewhere in Ethiopia, as well as various projects in Saudi Arabia, across the Red Sea.

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Nyanza Light Metals titanium processing funding

piling_works_Nyanza_Light_Metals_South_Africa

Site geotechnical studies and piling works at Nyanza Light Metals in South Africa. (Image source: Nyanza Light Metals)

South Africa-based Nyanza Light Metals Pty Ltd (Nyanza) is to get US$75mn in funding from the African Development Bank Group (AfDB) for the development, construction and operation of an 80,000-tonnes-per-year titanium dioxide pigment manufacturing plant and supporting infrastructure within the Richards Bay Industrial Development Zone

The aim is to boost industrialisation in Africa through local value addition to the continent’s abundant titanium mineral resources.

Titanium dioxide is a crucial pigment used across numerous industries, including paints and coatings, food processing, cosmetics and medical applications.

Manufacturers both in South Africa and across the rest of the region rely almost entirely on costly imports.

Nyanza’s project is intended to change this by producing titanium dioxide locally, contributing to import substitution and positioning Africa within the global titanium dioxide value chain.

“AfDB’s approval marks a pivotal moment, not just for Nyanza, but for Africa’s industrial future,” said Nyanza president and CEO, Donovan Chimhandamba.

“This endorsement affirms our mission to lead mineral beneficiation and positions Nyanza as a driver of inclusive industrialisation.”

Africa has long exported raw minerals, only to import back high-value finished products made from those same resources, at a premium, according to Chimhandamba.

“This cycle has constrained industrial growth and limited the continent’s ability to fully benefit from its natural wealth. With AfDB’s support, we are changing that by building a world-class titanium beneficiation complex to process African minerals locally for global markets.”

The bank’s contribution forms part of a syndicated funding package arranged by the Africa Finance Corporation and the African Export-Import Bank, serving as Initial Mandated Lead Arrangers and Bookrunners.

The AfDB’s support also includes US$25mn from the Africa Growing Together Fund (AGTF), a co-financing initiative between the AfDB and the People’s Bank of China.

A key focus of the Bank’s funding is job creation: the Nyanza project is expected to generate more than 2,400 domestic jobs during construction, around 30% of which will be reserved for women and 30% for youth, as part of efforts to reduce unemployment in South Africa.

“This investment reflects the African Development Bank's commitment to driving Africa’s industrial transformation and changing Africa’s narrative from a continent that is heavily dependent on raw material exports to one that is globally recognized as a prominent player in domestic value-addition to its natural resources,” said Solomon Quaynor, AfDB’s vice president for private sector, infrastructure and industrialisation.

“By supporting Nyanza to invest in infrastructure and local natural resources beneficiation, we are contributing to changing Africa’s old paradigm of exporting low-value raw materials while relying heavily on importing finished products; we are building an industrial economy that will create inclusive opportunities for millions of people across the continent.”

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Sandvik accelerates mining digital transformation programme

Sandvik unveils DataDrive’31, a six-year, €80 million programme to boost mining productivity, safety, and sustainability globally. (Image source: Sandvik)

Sandvik has unveiled DataDrive’31, an ambitious technology programme designed to accelerate the digital transformation of the mining sector through data-driven innovation

The six-year initiative carries a total budget of EUR 80 million (approx. US$87.2mn). Business Finland has approved EUR 16 million (approx. US$17.4mn) in R&D funding for the first three-year phase, with the potential to allocate an additional EUR 16 million (approx. US$17.4mn) for the second phase. The remainder will be directly financed by Sandvik, reflecting its strong commitment to technological advancement and the digitalisation of mining operations. A mid-term review will take place after three years to assess progress before moving into the next stage.

DataDrive’31 aims to develop innovative data-based technologies and solutions that improve productivity, safety, and sustainability across the entire mining value chain. Its key goals include:

Creating new services and products by utilising and commercialising data.
Integrating data-driven systems into equipment, operations, and aftermarket services to deliver comprehensive digital solutions.
Developing predictive and prescriptive operating environments that foster smarter, safer, and more sustainable mining practices.

“DataDrive’31 is at the forefront of the technological transformation of the mining industry,” said Mats Eriksson, president, mining at Sandvik. “Business Finland’s support accelerates our planned R&D work in key technology areas and strengthens our competitiveness in global markets. The strong technological expertise of Sandvik in Finland forms the foundation for this investment. DataDrive’31 is a key driver for the growth of our mining business and demonstrates our commitment to leading the industry’s data-driven future.”

Sandvik has a long-standing tradition of significant investments in R&D, digitalisation, automation, and electrification. Building on this foundation, DataDrive’31 reinforces Sandvik’s position as a leader in mining technology, ensuring it continues to deliver innovative, future-ready solutions for customers worldwide while driving sustained industry leadership.

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