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China's Baosteel anticipates Simandou to mine first freight by end 2025

China's most significant listed steelmaker, Baoshan Iron & & Steel, expects the Simandou iron ore project in Guinea to finish facilities building and construction and my own its very first freight by the end of 2025, the business said on Wednesday.

With annual production capability of 120 million metric loads, the project in the African country's southeast is set to be the world's largest mine for the highest grade of iron ore, key to the green transition in the international steel value chain.

Simandou has 4 mining blocks with two in the northern area established by a consortium of Singapore-based Winning International Group, Weiqiao Aluminium, which is part of China Hongqiao Group, and United Mining Providers.

Baowu has ended up being a crucial investor after completion of the transfer in June of shareholding rights by Winning Consortium Simandou (WCS), as it is known.

Because Simandou is abundant in high grade-resources with favourable mining conditions, production expense will be relatively competitive, the business said in a briefing on its third-quarter outcome.

The company hopes to optimise its ore blending structure after Simandou begins production, it included.

Baosteel is an unit of state-owned China Baowu Steel Group, the world's largest steelmaker by output.

The business likewise said the structure for its zero-carbon plant, with an investment of 4.5 billion yuan ($ 631 million) and powered by green hydrogen and green electrical energy in Zhanjiang in the southern province of Guangdong, will be finished in 2025.

On Tuesday, Baosteel reported a plunge of almost 65% in its third-quarter net earnings, undermined by a fall in steel costs.

Its export orders in the first three quarters struck a record high of 4.66 million loads, well on track for its 2024 target of 6 million lots.

(source: Reuters)