Conakry, Republic of Guinea ─ SimFer, a joint venture between the Government of the Republic of Guinea, Rio Tinto and Chalco Iron Ore Holdings, has today placed an order for locomotives from Wabtec Corporation (NYSE: WAB).
The USD$277 million deal will provide locomotives to transport high-grade iron ore from the Simandou mountain range, along a more than 620-kilometre multi-use TransGuinéen railway, to a port located in Morebaya, south of Conakry.
The TransGuinéen railway and the Simandou project’s port infrastructure are being co-developed by the Government of the Republic of Guinea, SimFer and Winning Consortium Simandou (WCS).
Once complete, all co-developed infrastructure and rolling stock will be transferred to and operated by the Compagnie du TransGuinéen (CTG) joint venture, in which SimFer and WCS each hold a 42.5% equity stake with the Government of Guinea holding the remaining 15% stake.
SimFer managing director Chris Aitchison said: “Our new partnership with Wabtec represents an important milestone for the Simandou project and brings us even closer to the delivery of the TransGuinéen railway – critical infrastructure that can support economic development across the country.“
“This partnership reinforces our commitment to delivering Simandou to globally recognized environmental standards, by providing locomotives that will deliver best-in-class fuel efficiency and the capability to meet international emission standards.”
The ES43ACmi is a dual-cab locomotive with a 4,500HP Evolution Series engine. In addition to providing best-in-class fuel efficiency, the locomotive provides proven performance in high-temperature environments. It also is capable of meeting UIC 3A and the U.S. Environmental Protection Agency’s Tier 3 emission standards.
Wabtec President of Freight Equipment Rogerio Mendonca said: “We are proud that the largest mining and related infrastructure project in Africa will leverage Wabtec’s world leading engineering and manufacturing resources. Our global team worked together to understand SimFer’s needs and provide a solution specifically tailored for Simandou.”
The Simandou mountain range, located in the south-east of Guinea, contains the world’s largest untapped reserve of high-grade iron ore, estimated at over 2 billion tonnes. First production from the SimFer mine is expected in 2025, ramping up over 30 months to an annualised capacity of 60 million tonnes per year.
