Conakry, Guinea – (African Boulevard News) – Guinea’s military junta leader, Colonel Mamady Doumbouya, has decided to hand over the Zogota iron ore concession to Indian tycoon Naveen Jindal’s Jindal Steel & Power Ltd (JSPL). Reports reveal that the company will manage the mines located in the Simandou Mountains in southeastern Guinea.
JSPL had initially signed a $2.1 billion agreement with Guinea’s previous government to develop and operate the Zogota mine, but the project was abandoned due to disputes with its former partner, the local Guinean company Guinea Mining Group (GMG).
Colonel Doumbouya’s decision appears to be an attempt to reassure foreign mining investors that Guinea remains open for business despite the forced ousting of President Alpha Conde in September last year, and the subsequent negative events that have followed.
The Simandou Mountains, recognized as one of the world’s largest untapped iron ore reserves, have seen a lot of recent attention. Many large mining companies have tried to get a piece of the action in the past, but were held back by bureaucratic delays.
The previous government had been in talks with a consortium of investors to develop half of the Simandou deposit. But this project also fell apart due to disagreements over terms and the management of the project. The cancellation of the consortium’s license has now paved the way for JSPL to become the leading investor and operator of the iron ore mine in the region.
Jindal’s move has been welcomed by Guinea’s new government, which is eager to attract more foreign investment, particularly in the mining sector. The government hopes that this will help to create more jobs for Guineans and promote economic growth in the country.
Jindal Steel and Power Ltd is not new to Guinea: The firm already has several mining operations in the country, and their investment in the Zogota mine will be a significant boost to the country’s economy.
Jindal’s move to take control of the Zogota iron ore concession in Guinea’s Simandou Mountains is seen as a positive development. Many hope that the company’s venture will encourage other foreign investors and bring much-needed employment and economic growth to the country.