Environmental & Social Review Summary
Project Number
26320
Company Name
RIO TINTO SIMFER SA
Date ESRS Disclosed
Jul 24, 2007
Country
Guinea
Region
Africa
Last Updated Date
Jun 3, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Aug 10, 2007
Signed : Aug 10, 2007
Invested : May 7, 2008
Sector
Iron (Pellets, etc.)
Industry
Infrastructure
Department
Gbl Infrastructure & Natural Resources
Project Description
The project refers to the exploration, evaluation of high grade iron ore resources within a 110 km long Mining Concession (MC) that covers the Simandou mountain range in south eastern Guinea. The Mining Convention covering the Concession area is held by a locally incorporated Rio Tinto subsidiary, SIMFER S.A. The proposed IFC investment is the acquisition of a 5% stake in SIMFER S.A. and future contributions to equity cash calls until completion of a Feasibility Study for any of the exploration targets in the Simandou Range. In addition to the equity investment, IFC will have call options to acquire 5% stakes in potential iron ore resources in other Rio Tinto Iron Ore (RTIO) Exploration Licences in Guinea, applied for but not yet granted, namely Simandou North, Simandou South, Forécariah and Diéké (the Additional License Areas).
RTIO, a wholly owned subsidiary of Rio Tinto Holdings plc., has undertaken extensive iron ore exploration work in Guinea since 1996. Most of the exploration activities were concentrated at the Pic de Fon area within a 7.5 km stretch of the 110 km long Simandou Range. The current exploration program includes 13 different targets spread out within the approximately 740 km2 Mining Concession, of which the southern zone, namely Pic de Fon and Oueleba are the most advanced. The Pic de Fon - Oueleba prospects have progressed from a pure exploration phase to a “Pre-Feasibility Study” (PFS) phase as of April this year. The PFS and continuing exploration on other targets within the MC have the potential of identifying sufficient high grade resources to support a 70 mtpa mining operation with a mine life of 30 years plus. During the PFS stage, Rio Tinto will study various mine and infrastructure solutions for the scope identified above, including approximately 710 kms of railroad to transport the iron ore to the coast of Guinea and the construction of a deep water port south of Conakry.
RTIO, a wholly owned subsidiary of Rio Tinto Holdings plc., has undertaken extensive iron ore exploration work in Guinea since 1996. Most of the exploration activities were concentrated at the Pic de Fon area within a 7.5 km stretch of the 110 km long Simandou Range. The current exploration program includes 13 different targets spread out within the approximately 740 km2 Mining Concession, of which the southern zone, namely Pic de Fon and Oueleba are the most advanced. The Pic de Fon - Oueleba prospects have progressed from a pure exploration phase to a “Pre-Feasibility Study” (PFS) phase as of April this year. The PFS and continuing exploration on other targets within the MC have the potential of identifying sufficient high grade resources to support a 70 mtpa mining operation with a mine life of 30 years plus. During the PFS stage, Rio Tinto will study various mine and infrastructure solutions for the scope identified above, including approximately 710 kms of railroad to transport the iron ore to the coast of Guinea and the construction of a deep water port south of Conakry.
Overview of IFC's Scope of Review
This ESRS has been revised in order to reflect a slight change in the wording relating to the process of categorization of any potential future investment in this project to ensure consistency with IFC procedures.
IFC’s review of this project consisted of appraising technical, social, health, safety, environmental and community (HSEC) information submitted by the project sponsor along with site visits and discussions with Government of Guinea agencies and authorities by IFC Environment and Social staff.
With the investment consisting of equity in Simfer S.A., a subsidiary of Rio Tinto Iron Ore (RTIO), IFC’s E&S due diligence has been at the corporate level (RTIO) as well as looking at the Simandou Project exploration and pre feasibility activities. Between August 2005 and June 2007 a team of technical, environmental and social specialists undertook eight (8) visits to Conakry, Guinea including two visits of one week each to the Simandou area to undertake a detailed appraisal of exploration and development activities. IFC has been interacting closely with the company’s management team and the various HSEC consultants on the project technical details, development plan and the environmental and social impact assessments and consultations conducted to-date, and has agreed the additional steps required thereafter. Further meetings were also held with Rio Tinto’s senior corporate executives in London, and the exploration and mine feasibility teams in Bristol and Conakry.
The appraisal team has reviewed the technical, environmental and social documentation available to date for the Simandou Project. The focus has shifted recently from initial social and environmental due diligence to a close involvement in the preparation of the Social and Environmental Assessment (SEA) prepared by an independent consultant. IFC’s recent input was to:
- reflect the need for a detailed Action Plan per IFC requirements,
- highlight community engagement work done and additional information required on the socio-economic profile of the communities potentially impacted; and
- assess opportunities for additionalities regarding local economic development.
The IFC appraisal team met with representatives of the Beyla and Kerouane Prefecture including the Mayor of each town, the Prefet, local health workers, and observed a public consultation meeting in Morabidou. Formal meetings with Government officials in charge of Mining and Environment took place in Conakry and informal discussions with key stakeholders in the Guinée Forestière and Haute Guinée Regions.
IFC’s review of this project consisted of appraising technical, social, health, safety, environmental and community (HSEC) information submitted by the project sponsor along with site visits and discussions with Government of Guinea agencies and authorities by IFC Environment and Social staff.
With the investment consisting of equity in Simfer S.A., a subsidiary of Rio Tinto Iron Ore (RTIO), IFC’s E&S due diligence has been at the corporate level (RTIO) as well as looking at the Simandou Project exploration and pre feasibility activities. Between August 2005 and June 2007 a team of technical, environmental and social specialists undertook eight (8) visits to Conakry, Guinea including two visits of one week each to the Simandou area to undertake a detailed appraisal of exploration and development activities. IFC has been interacting closely with the company’s management team and the various HSEC consultants on the project technical details, development plan and the environmental and social impact assessments and consultations conducted to-date, and has agreed the additional steps required thereafter. Further meetings were also held with Rio Tinto’s senior corporate executives in London, and the exploration and mine feasibility teams in Bristol and Conakry.
The appraisal team has reviewed the technical, environmental and social documentation available to date for the Simandou Project. The focus has shifted recently from initial social and environmental due diligence to a close involvement in the preparation of the Social and Environmental Assessment (SEA) prepared by an independent consultant. IFC’s recent input was to:
- reflect the need for a detailed Action Plan per IFC requirements,
- highlight community engagement work done and additional information required on the socio-economic profile of the communities potentially impacted; and
- assess opportunities for additionalities regarding local economic development.
The IFC appraisal team met with representatives of the Beyla and Kerouane Prefecture including the Mayor of each town, the Prefet, local health workers, and observed a public consultation meeting in Morabidou. Formal meetings with Government officials in charge of Mining and Environment took place in Conakry and informal discussions with key stakeholders in the Guinée Forestière and Haute Guinée Regions.
E & S Project Categorization and Applicable Standard
Environmental and Social Mitigation Measures
Stakeholder Engagement
Related SII
