Core Insights - The Simandou iron ore project in southeastern Guinea, anticipated for nearly 30 years, is set to commence production on November 11, 2025, marking a significant milestone for Guinea's economic development and a major disruption in the global iron ore market [1][3]. Investment and Production Capacity - The total investment in the Simandou project amounts to $23 billion, with an annual production capacity of 120 million tons, which will secure a substantial share in the global iron ore trade [3]. - The iron ore quality at Simandou is reported to be 65%, significantly higher than the global average, which will lower smelting costs and contribute to environmental sustainability by reducing carbon emissions [3]. China's Strategic Position - China's leading role in the project underscores its growing influence in global resource allocation, potentially altering the pricing power in the iron ore market and reducing reliance on foreign mining giants [3][5]. - The expected export volume from Simandou is projected to account for 7% of global iron ore trade, enhancing China's bargaining power as the largest iron ore importer [5]. Economic Impact on Guinea - The development of the Simandou mine is expected to create numerous job opportunities and improve living standards in Guinea, helping to avoid the "resource curse" [7]. - The International Monetary Fund (IMF) forecasts that the mine will drive Guinea's GDP growth by over 25% in the next decade, positioning it as a crucial pillar of the national economy [7]. Global Market Dynamics - The successful launch of Simandou will prompt countries to reassess their resource strategies within the global supply chain, leading to a need for more flexible approaches from the U.S. and its allies in response to China's expanding influence [9]. - The iron ore market may experience a significant reshuffle, with experts predicting that prices could drop to $85 per ton within three years, impacting the global iron ore industry [5].