By: OrePulse

The World Bank has urged Guinea to use revenue from its exploitation of the Simandou iron-ore project, the largest known iron-ore reserve on earth, to diversify and strengthen its economy rather than focus solely on export volumes.

"The question we must ask ourselves is not just how much ore Guinea will export, but how many jobs, investments and new economic opportunities Simandou will help create," Ousmane Diagana, the World Bank's vice president for Western and Central Africa, said in Conakry, Guinea's capital, on Monday. "Simandou offers a historic opportunity and represents a potential economic turning point for Guinea," he said.

The mines, which entered production in November, shipped 6.8 million tons of iron ore during the first six months of this year.

Ownership of the Simandou concession is split into four blocks. Chinese-backed Baowu Winning Consortium Simandou holds blocks 1 and 2, with investors including China Baowu Steel Group, while Rio Tinto, based in London, and China's Aluminum Corp. of China, known as Chinalco, hold blocks 3 and 4. Guinea's government holds a 15% interest in each of the four block-holding companies, as well as a separate 15% interest in the entity responsible for the project's rail and port infrastructure.

Guinea's economic growth is projected by the International Monetary Fund to climb to 8.7% this year and 9.3% next year, up from 6.7% in 2025, with mining activity at Simandou a key driver. The World Bank estimates unemployment and poverty stood at 5.2% and 33%, respectively, in 2025.

Diagana spoke at a ceremony marking $320.8 million in new World Bank support for investment in agriculture, energy and tax administration. The funding forms part of a $3 billion country partnership framework with Guinea covering 2027 through 2033.

The new financing comes as Guinea pursues Simandou 2040, a national plan that aims to attract $300 billion in investment across the economy over the next ten years.

Guinea's Minister of Economy, Finance and Budget, Mariama Cire Sylla, said at the ceremony that Simandou had entered production but that "the stakes go beyond merely exploiting a mineral resource." She said the government's ambition was "to transform this wealth into sustainable shared prosperity, by creating added value in Guinea, developing our production and processing capabilities."