SYLLA & PARTNERS, working with an international law firm, assisted the Government of the Republic of Guinea in discussions with Aluminium Corporation of China Ltd (Chinalco) on the development of the Simandou North blocks. The investment amount for the project in the South blocks alone was estimated at at least 20 billion US dollars.
Following Rio Tinto’s withdrawal from the Simandou project, the Republic of Guinea initiated discussions with Chinalco regarding the takeover of the project. The Simandou iron ore deposit represents one of the largest and richest high-grade iron ore deposits in the world, and its development constitutes a major strategic challenge for the Guinean economy.
The withdrawal of a major partner like Rio Tinto from a project of this magnitude required a complete restructuring of the development arrangements, including the revision of existing agreements, the definition of new governance and financing structures, as well as the renegotiation of commercial and fiscal terms.
SYLLA & PARTNERS, as a member of a multidisciplinary international consortium, assisted the Government of Guinea in discussions with Chinalco on the development of the Simandou North blocks. The mission aimed to ensure effective restructuring by ensuring a fair balance between the interests of the parties.
Our firm provided its in-depth local expertise of the Guinean legal and regulatory framework, mobilizing our skills in mining law, project finance and negotiation of major infrastructure projects.
The services performed by SYLLA & PARTNERS within this international consortium included legal analysis of existing agreements and their implications, advice on the Guinean legal and regulatory framework applicable to the project, participation in strategic discussions with Chinalco on project restructuring arrangements, as well as coordination with other members of the international consortium to ensure a coherent and effective approach.
However, this mission was interrupted following Rio Tinto’s return to the project, illustrating the complexity and evolving nature of major international mining projects that may undergo several restructuring phases before their final implementation.
The SYLLA & PARTNERS team was led by Pierre Kodjo AVODE, partner, assisted by Mohamed Sidiki SYLLA and Madigbè KABA.
To discover other major mining projects that our firm has completed in Guinea, visit our references page. For any questions regarding our services in mining project restructuring or negotiation with international investors, please do not hesitate to contact us.