Shipping services in Guinea are being altered as vessels that typically transport bauxite have been diverted to carry higher-priced, high-grade iron ore. This shift occurs as the West African country ramps up exports intended for China’s “green steel” production lines.
According to international shipbroking and maritime research firm Ifchor Galbraiths, vessels are being diverted to maximize iron ore exports before heavy seasonal rains halt production. Analysts stated that securing supplies from Guinea helps China with its broader effort to diversify iron ore sources away from Australia and Brazil.
Guinean authorities are pressuring joint venture partners at the Simandou megaproject to scale up shipments prior to the onset of seasonal rains. Authorities demand that shipment flows be more than doubled to 4 million tonnes per month before heavy rains begin, according to reports from South China Morning Post.
The pressure on scaling production falls directly on two main operators at the project: Baowu Winning Consortium Simandou (BWCS) and another unnamed partner group mentioned in source context regarding blocks 1 and 2 development. The first operator is BWCS, which is led by majority stakeholder China Baowu Steel Group alongside partners Winning International Group and Weiqiao Aluminium.
BWSC is developing blocks 1 and 2 of the project. These operators face demands to increase output as Guinean authorities push for higher export volumes before weather conditions impact operations.