Rio Tinto(US:RIO) Sou Hu Cai Jing·2025-10-27 17:45Core Insights - The Simandou iron ore project in Guinea is being developed in two main sections: the northern blocks (1 and 2) by a joint venture between Baowu and WCS, and the southern blocks (3 and 4) by a joint venture between Rio Tinto and Chalco [1][2] - The northern project is expected to reach an annual production of 15 million tons by 2026, with a target of 60 million tons by 2030, while the southern project is projected to produce 4.6 million tons in 2026 and reach full capacity by 2032 [2][3] - The official mining ceremony for the Simandou project is scheduled for November 11, marking a significant milestone in Guinea's mining development [1] Northern Project Details - The northern blocks will have a mining capacity of 60 million tons per year, with a 552 km railway and port system being constructed [1] - The estimated production costs for the northern project are projected to range between $61 and $65 per ton, including infrastructure costs [2] Southern Project Details - The southern blocks will also have a mining capacity of 60 million tons per year, with an estimated annual production of 24 million tons for the company's share [1] - Initial operating costs for the southern project are expected to be higher, starting at $137.19 per ton in 2026 and decreasing to $68.18 per ton by 2030 [2][3] Cost Breakdown - The total production costs for the northern project are expected to decrease from $64.00 per ton in 2026 to $61.83 per ton by 2029, with various components such as mining, transportation, and management fees detailed [3] - The southern project's costs are projected to decline significantly over time, with a notable reduction in operating costs as production ramps up [2][3]