Insight
Vale and BSGR stripped of Simandou - does Africa's Pilbara have another chance?
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Report summary
The Government of Guinea (GoG) have decided to withdraw the mining permit held by VBG, the joint venture of BSGR and Vale, in the giant Simandou iron ore deposit. Based on an estimated US$12.7 billion in capital, we estimate a valuation of US$2.6 billion for the deposit, with an implied 62% Fe Pilbara Fines FOB break-even price of US$75.6/tonne (2014 real). Though the deposit is potentially extremely profitable, there are considerable risks involved with the project.
Table of contents
- Executive Summary
- History of the deposit
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Location and size
- Figure 1: Detailed map
- Figure 2: 62% Fe adjusted marketable reserves as of 01/01/2014
-
Costs and valuation
- Table 1: Capital cost estimates (2014 real)
- Table 2: Operating cost estimates (2014 real)
-
Potential bidders
- Anglo American:
- BHP Billiton:
- Rio Tinto:
- Who dares wins?
Tables and charts
This report includes 6 images and tables including:
- Vale and BSGR stripped of Simandou - does Africa's Pilbara have another chance?: Image 1
- Vale and BSGR stripped of Simandou - does Africa's Pilbara have another chance?: Image 2
- Vale and BSGR stripped of Simandou - does Africa's Pilbara have another chance?: Table 1
- Vale and BSGR stripped of Simandou - does Africa's Pilbara have another chance?: Table 2
- Vale and BSGR stripped of Simandou - does Africa's Pilbara have another chance?: Table 3
- Figure 2: 2020 US$/dmt 62% Fe equivalent curve FOB seaborne export (2014 real)
What's included
This report contains:
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