PART 2 Mining a Shared Destiny: Sierra Leone Draws Inspiration from Simandou 2040 – Following the Official Launch of Operations of SIMANDOU 2040 at Morebaya Port, Guinea
Wednesday, 12 November 2025
By Julius Daniel Mattai, Minister of Mines and Mineral Resources
Standing on the threshold of an unprecedented mineral transformation, the Simandou Iron Ore Project heralds a new era for Guinea and West Africa—one where the nation is set to deliver up to 120 million tonnes of premium iron ore. With thousands of jobs, landmark infrastructure, and immense public revenues on the horizon, Simandou’s success signals bold opportunities and urgent challenges for Sierra Leone and the broader region to innovate, collaborate, and prosper together.
-Simandou is expected to produce up to 120 million tonnes of high-grade iron ore annually at full capacity, with commercial shipments beginning in November 2025 and ramping up to maximum output by 2028–2030. This volume represents about 7–9% of the global seaborne iron ore supply, fundamentally shifting market dynamics and positioning Guinea among the top iron ore exporters worldwide.
– At projected 2028–2030 price ranges of $85–$90 per tonne, annual Simandou exports may generate over $10 billion in revenue for Guinea, depending on market fluctuations and grade-based pricing premiums. Note that in 2024, Sierra Leone exported about 11 million tonnes of iron ore, valued at about USD 786 million. By 2028, Sierra Leone is projected to annually export about 15-20 million tonnes of iron ore, benefitiated to 62%-65% Fe.
– The Simandou Project is forecast to boost Guinea’s GDP by 26% by 2030, with substantial contributions in tax revenues, export earnings, and public investment capacity. Guinea’s income-to-GDP ratio could rise from about 13% to over 17% if managed effectively, with positive but moderate impacts on poverty reduction.
– Socio-economic benefits of the Simandou Project include thousands of new jobs for Guineans, extensive infrastructure upgrades (over 630 km of railway and a new deep-water port at Morebaya), and capacity-building in communities surrounding the mine. The development of this associated infrastructure stimulates broader economic sectors: agriculture, logistics, technology, and manufacturing, facilitating regional trade and integration.
– Simandou’s high ore grade supports premium pricing, provides steelmakers increased efficiency, and aligns with industry decarbonization, though market integration could exert downward pressure on overall iron ore prices—especially affecting lower-grade, higher-cost producers like those in Sierra Leone.
– The emergence of Simandou creates challenges for Sierra Leone’s iron ore industry, which faces higher costs and lower grades, potentially reducing competitiveness, squeezing profit margins, and raising the bar for attracting new investment.
– Opportunities remain for Sierra Leone to focus on local beneficiation, policy reform, and leveraging infrastructure for economic diversification, but it must address its cost competitiveness and embrace innovation to retain global relevance.
– Both Sierra Leone and Guinea have the chance to collaborate on regional value chains and maximize the developmental impact of West Africa’s mineral wealth, using lessons from Simandou as a model for inclusive, sustainable growth.