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4 E&MJ; • JUNE 2014 www.e-mj.com NEWS-LEADING DEVELOPMENTS The government of Guinea, Rio Tinto, Chinalco and the International Finance Corp., in a joint press statement released on May 26, announced they had signed the Investment Framework (IF) for blocks 3 and 4 of the Simandou iron-ore pro- ject, regarded as the largest combined iron-ore and infrastructure project ever to be developed in Africa. The IF provides the legal and commercial foundation for the project. The Simandou project is located in southeast Guinea. Project participants include the Republic of Guinea (7.5%), Rio Tinto (46.57%), Aluminum Corp. of China (41.3%) and the IFC (4.625%), a member of the World Bank Group. The project com- prises three principal components: • A high-grade iron-ore mine (blocks 3 and 4 of Simandou) expected to pro- duce 100 million tons per year; • A new 650-km trans-Guinean multiuser railway to transport iron ore to the Guinean coast; and • A new deep-water multiuser port in the Forécariah prefecture. Following the signing of the frame- work, the government of Guinea was expected to quickly submit the IF for consideration of ratification by the Guinean National Assembly. Once rati- fied, the project partners will finalize, within approximately one year from ratifi- cation, a Bankable Feasibility Study. The project's railway and port infra- structure will, for the first 30 years of operation, be owned by a new infrastruc- ture company to be called InfraCo. Rio Tinto is currently leading the project part- ners' effort to assemble a consortium of investors who, as InfraCo, will finance, build and own the multiuser 650-km rail- way and deep-water port infrastructure until its eventual transfer to the Republic of Guinea. When fully operational, the project has the potential to double the country's cur- rent GDP and is expected, at full capaci- ty, to spawn an estimated 45,000 jobs throughout the economy. It also is expect- ed to induce subcontracting and procure- ment activities, as new and upgraded roads and the development of fiber and wireless communications will underpin indirect economic development for com- munities along the infrastructure route. State Minister of Mines and Geology of the Republic of Guinea Kerfalla Yansané said, "Simandou is one of the largest and best quality iron-ore deposits in the world. It has the potential to pro- vide the global market with highly com- petitive ore for more than 40 years. This estimated $US20 billion project, aiming to develop blocks 3 and 4 of Simandou along with the infrastructure, will boost Guinea's whole economy and spur our Southern Growth Corridor through min- ing, agriculture, forestry, livestock and trade. It's about unlocking our huge potential, supporting our efforts to tackle poverty through jobs creation and eco- nomic diversification, and getting more attractive to foreign direct investment." Fatalities at South Deep Temporarily Halt Production Gold Fields Ltd. reported on May 27 that an employee at its South Deep gold pro- ject in South Africa died in an accident in an underground satellite workshop at the mine, the second fatal accident of a similar nature to occur at South Deep in 10 days. In a later statement released on May 29, the company said that the Depart- ment of Mineral Resources (DMR) had completed an inspection of the scene of the second accident and subsequently had issued a Section 54 order, placing a moratorium on all workshop-related activities across the mine, pending the completion of a report back to the DMR. This effectively stopped all production from the mine. At the time of the order issuance, South Deep's management estimated that, as a consequence of the Section 54 stoppage, there would be a dropoff of approximately 300 kg (9,645 oz) of gold production by the end of the week. An estimated 200 kg (6,430 oz) more would be deferred due to the reassessing of working practices in all workshops and safety control systems on the mecha- nized mining fleet. However, the DMR lifted the order late on May 30 subject to implementa- tion of a number of specific remedial actions and instructions. Operations resumed in the Twin Shaft area first, fol- lowed by the South Shaft area. The potential for development in the project's growth corridor. (Source: Dobbin International) Agreement Signed for $20B Simandou Iron-ore Project EMJ_pg04-45_EMJ_pg04-45 6/4/14 9:00 AM Page 4