Shipping services in Guinea are being upended as the West African country ramps up iron ore exports for China’s “green steel” production lines to take advantage of much higher prices.
Vessels that usually ship bauxite from Guinea have been diverted to iron ore to maximise exports before heavy seasonal rains grind production to a halt, according to international shipbroking and maritime research firm Ifchor Galbraiths.
Analysts say that shoring up supplies from Guinea helps China with its broader push to diversify away from Australian and Brazilian iron ore.
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Guinean authorities are pressing joint venture partners at the Simandou megaproject to scale up iron ore shipments to China, demanding they more than double flows to 4 million tonnes per month before the heavy rains start.
The pressure falls directly on the project’s two main operators.
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The first is Baowu Winning Consortium Simandou (BWCS) – led by majority stakeholder China Baowu Steel Group alongside partners Winning International Group and Weiqiao Aluminium – which is developing blocks 1 and 2.