Rio Tinto Group, the world’s second-biggest miner, is accelerating its work on potential development of the giant Simandou iron-ore project in Guinea as half-year earnings showed the steel-making ingredient dominated the producer’s profits.
New studies with partners are aimed at cutting the project’s capital intensity, operating costs and development timetable, with some fieldwork to start this half, London-based Rio said Wednesday in an earnings statement. Profit fell 4% to about $4.8-billion in the first six months as stronger iron ore prices helped to offset a coronavirus-fuelled slump in aluminum and copper markets.
“There is a growing demand for high-quality iron-ore and I think Simandou is one of the best sources of high-grade iron-ore,” CEO Jean-Sebastien Jacques told reporters. “It’s important for people to understand that Simandou will happen with or without Rio Tinto involvement.”