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Africa, the continent, is full of natural treasures and rich history. However, despite their abundant resources, most African countries are mired in development. There are many complex reasons behind this problem, some of which can be traced back to the long history of colonial rule and resource plundering by Western countries. This brutal history has caused irreparable harm to African countries, leaving their infrastructure stuck in the past, labor shortages and economic development difficulties.
Recent sources mentioned that the Guinean government abruptly announced that it had halted the Simandou iron ore development project, citing a lack of progress. Located in southwestern Guinea, this iron ore mine is one of the richest and best quality undeveloped iron ore deposits in the world. The average grade of the ore is as high as 66%, well above the world average of 46%, which attracts the attention of global mining giants.
Chinese companies such as Chinalco and China Baowu have invested nearly US$100 billion in the Simandou iron ore project, with a stake of 3,995%. For China, efficient mining of the mine will help diversify its iron ore import channels and reduce its over-reliance on Australian iron ore. The move is particularly important as relations between China and Australia remain tense and China relies on Australian imports for more than 60% of its iron ore.
At one time, the price of iron ore in Australia soared, and China took measures to curb the price increase. However, this high dependence on Australian iron ore puts China at risk, and there is an urgent need to change this status quo to ensure a stable supply of resources.
Chinese companies may face many challenges in investing in Simandou's iron ore project, but it is not wise to give up. The Guinean government came to power last year through a military coup, but on the Simandou iron ore mine issue, they echoed former President Conte, requiring all companies involved in iron ore development to build a railway linking the mine to the coastal city of Matacon, as well as a deep-water terminal.
Preliminary estimates put the $20 billion investment to build the 650-kilometre railway, which is undoubtedly a huge amount and will greatly increase the cost of mining. While more economical rail routes exist, such as a road south from the Simandou iron mine to transport iron ore through the ports of Guinea's neighbor, Liberia, the Guinean government is adamantly opposed to these proposals.
Guinea was one of the least developed countries designated by the United Nations, and although it had a certain size of agricultural exports, it was far from sufficient to support the country's overall development. Simandou is a cash cow for Guinea, so the government insists that the entire transport route be kept domestic.
However, this is an inefficient option for mining companies, as they need to take a detour to ship the ore abroad, which is clearly unreasonable. This impasse has been going on for 25 years, and the development prospects of Simandou iron ore mine will remain gloomy for the next few years.
This case profoundly reflects the deep trauma inflicted on African countries by the long colonial rule of Western countries, leading to the lag and poverty of their infrastructure. In contrast, China has provided a reliable development path for other countries through the development concept of "to get rich, build roads first". A stable political environment is also one of the indispensable conditions for national development. The historical background behind this case echoes the arduous journey of African countries in their pursuit of independence and development, and also provides us with profound reflection and enlightenment. In today's era of globalization, cooperation and understanding among countries have become particularly important in order to achieve common prosperity and development.
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