Baowu Group Leads Group Fund to raise 100 billion yuan to develop Africa's giant iron ore mine

China Baowu Iron and Steel Group Co. , Ltd. , China's largest steel company, is planning to open Simandou iron ore mine in Guinea, Africa. The Simandou iron deposit is located in the mountains of southeastern Guinea, Africa. According to the China Ambassador to Guinea in official website, Simandou has accumulated reserves of more than 10 billion tons of iron ore, with an average grade of 65 percent, considered to be the world's largest untapped reserves and highest quality iron ore. The consortium, led by the Aluminum Corporation of China (Chalco) , has a 44.65 percent stake in blocks 3 and 4 of the Simandou mine, and Baowu is in talks to take a stake in the project, and joint development with other steel enterprises. Based on preliminary research, the Baowu group estimated that the total investment for the development of blocs 3 and 4, including infrastructure construction, would be around US $15 billion.