The Wechat account in Baowu announced this weekend that the signing of the agreement reached an important cooperation consensus on the joint investment and development of the Simandou project railways and ports in Guinea. This project has the largest untapped reserve of high-quality iron ore in the world, with an estimated annual production of 120 million tons of capacity at the initial stage. For analysts, the agreement marks an important step in multi-month negotiations that will lay a solid foundation for the resumption and exploration of the Simandou project.

The deal was signed on Thursday and represents another step in reaching an agreement on detailed terms, investment structure, financing conditions, construction model, and location policy, after a joint venture .

In addition, the development of the project requires basic supporting infrastructures, namely, a railroad with a length of more than 600 kilometers that extends across eastern and western Guinea, and a port on the country's west coast.