(Ecofin Agency) - The government of Guinea called Rio Tinto to respect its commitment regarding the development of Simandou iron project after the firm’s CEO said the company might abandon the project which is the world’s largest iron-ore deposit. The Mining Ministry in a recent statement said the country was counting on Rio and other investors, including Aluminum Corporation of China and International Finance, to meet their funding commitments for the project.

Advancing the fall in iron-ore prices (70% since 2011) as a reason, Rio Tinto’s CEO, Jean-Sébastien Jacques earlier this week told The Times: “It’s not the right time to develop this project from a Rio standpoint. The other stakeholders might have different perspectives on this one.”

A spokesman for Rio declined to comment beyond Jacques’ remarks in the newspaper.

However, Guinea refuses to abandon the project which could double its economy and create more than 45,000 jobs.

Moreover, Sundance Resources which operates the Mbalam-Nabeda iron-ore project, located at the Cameroon-Congo border, reiterated its commitment to develop the Simandou project despite the fall in prices of iron-ore. “There is no question of abandoning such an important project, especially with the constant support of the highest authorities of Cameroon and Congo,” CEO Giulio Casello said.

South Simandou is an iron-ore mine to which is integrated another transport infrastructure project. The high grade iron ore deposit (65.5% Fe) in which Rio Tinto holds a 47% interest can sustain a mine life in excess of 40 years during which it can produce 100 million tons each year

Louis-Nino Kansoun