WFW advises Guinea as USD15bn Simandou African mega-project closes

The USD15bn Simandou project (“Simandou”), the largest greenfield integrated mine and infrastructure investment in Africa to date, on which Watson Farley & Williams (“WFW”) has been advising the Republic of Guinea (“Guinea”), has now completed, including the required Guinean and Chinese regulatory approval.

Closing was followed both the second anniversary celebration for Compagnie du Transguinéen (“CTG”), the joint venture consortium that will own and manage the Simandou rail and port infrastructure, and the signing of the first locomotive order to service the project.

CTG is comprised of Guinea, Baowu Group (leading a consortium of Chinese steel manufacturers and other investors), Simfer Jersey (a joint venture between Rio Tinto and a consortium led by China’s state-owned Chalco Iron Ore Holdings) and WCS (a consortium comprising the Winning International Group, China Hongqiao Group, Guinean mining logistics company UMS, as well China’s Yantai Port Group).

Whilst Simandou revolves around the exploitation of four world-class iron ore blocks in southern Guinea, the project goes far beyond mining and includes the construction and operation of a 600+ KM multi-use railway line connecting the blocks to a large, newly constructed state-of-the-art mineral port to export up to 120 million tonnes of iron internationally. This new rail and port infrastructure will act as a catalyst for transforming Guinea’s economic development, unlocking prosperity well beyond the Simandou corridor as well as empowering local communities and reducing poverty nationwide.

With all the project’s core agreements requiring compliance with the highest ESG standards, Simandou also delivers a significant new source of high-grade iron ore that will strengthen the decarbonisation of the steel industry helping combat global climate change.

The multidisciplinary cross-WFW team that advised Guinea was led by Dubai Projects partner Alhassane Barry working closely with London corporate partner and Global Mining & Commodities Sector co-head Jan Mellmann and Paris Regulatory & Public Law partner Arnaud Troizier, as well as ESG partners Sarah Ellington and Nick Walker, corporate partner Chris Kilburn and Tax Partner Richard Stephens in London; Dispute Resolution partner Franck Poindessault, Tax partner Romain Girtanner and Regulatory, Public Law & Competition senior consultant Lucien Rapp in Paris; Tax and Regulatory partner Daniel Pilarski in New York; and Projects partner Mhairi Main Garcia in Dubai. They were supported in London by counsel Valentina Keys (ESG) and senior associates Thomas Newlyn (Corporate), David Bath (Corporate) and Rhiannon Elias (Projects) and associates Sulaiman Hoosen (Corporate), Idil Yusuf (Corporate) and Philippa Beasley (ESG); in Paris by counsel Hélène Ibos (Tax) and associates Maximilian Cristescu (Tax) and Mohamed Douib (Corporate); and in Dubai by senior associate Amoetsoe Mkwena and associate Benjamin Ruffet (Projects). Alhassane and Jan commented, “The strength and depth of our experience in our core sectors and ability to work seamlessly and collaboratively across our international network meant we were able to provide Guinea a truly global legal team to help it complete this historic project which represents a new era for the development of the African mining sector”.