China Merchants Energy Secures Long-Term Shipping Contract for Africa’s Largest Mining Project
Select Language:China Merchants Energy Shipping, which manages a large global fleet for energy and commodity transportation, announced that its Hong Kong subsidiary will enter into a long-term contract to. . .
Select Language:China Merchants Energy Shipping, which manages a large global fleet for energy and commodity transportation, announced that its Hong Kong subsidiary will enter into a long-term contract to ship iron ore from Guinea’s Simandou project—the largest mining venture in African history. Hong Kong-based Ming Wah Shipping will supply China Mineral Resources Group International Supply Chain, which holds exclusive rights to transport ore from Simandou, with charter services for sea shipments, according to the company’s statement today. The parent company, based in Shanghai, highlighted that Ming Wah Shipping has already transported approximately 600,000 tons of iron ore from the mine since production started last November. Under the new agreement, which aims to establish a sustained partnership, freight rates will be tied to Baltic Exchange shipping indexes and adjusted based on a cost-driven mechanism. Shares of China Merchants Energy rose 3 percent today, closing at CNY14. 72 (about USD2. 17) per share. The Shanghai Composite Index also increased by 1. 8 percent. Simandou is a large open-pit hematite mine situated in southeastern Guinea’s Kérouané prefecture, with proven reserves of roughly 4. 4 billion tons of high-grade iron ore containing over 65 percent iron. Once fully developed, the project is expected to produce around 120 million tons annually. Development has been carried out in phases across two separate blocks. Currently, only the northern block is operational. The northern block’s developer is controlled by a major Chinese steel group, while the southern block is primarily owned by Rio Tinto, with Aluminum Corporation of China holding a significant minority stake. Despite the differing ownership structures, both blocks have granted comprehensive supply chain rights to China Mineral Resources Group International Supply Chain for iron ore exports to China. Fahad KhanA Deal hunter for Digital Phablet with a 8+ years of Digital Marketing experience.