SimFer award contract to Xuzhou Construction Machinery Group for the acquisition of Heavy Mobile Equipment
Conakry, Republic of Guinea ─ SimFer, the joint venture between the Government of the Republic of Guinea, Rio Tinto and Chalco Iron Ore Holdings (CIOH), hosted a signing ceremony to mark the award of a contracts of over US$110 million value for the acquisition of heavy mobile equipment (HME), parts and associated maintenance services to Xuzhou Construction Machinery Group (XCMG).
The contract is critical to SimFer’s production capabilities and present substantial opportunities for local community advancement. XCMG has pledged to make considerable investments aimed at bolstering community development initiatives, enriching training programs, expanding local procurement, and increasing employment prospects.
XCMG will supply HME for use at the SimFer mine sites. Combined, the entities will supply approximately 34 x 230t trucks and 6 x graders for the project. The contract also includes the provision of full maintenance services, and vendor managed spare parts.
Chris Aitchison, Managing Director of SimFer said “Following a competitive tender process, we are pleased to award the HME contract to internationally renowned XCMG. This contract—with its robust provisions for community development and technical training—reflects our project partners’ commitments to maximising the benefits of the Simandou project through local content, prioritisation of local employment and upskilling, and investment in vocational and technical skills.”
As part of the contract, XCMG has committed to investing heavily into local community programs and environmental initiatives. In addition, XCMG will undertake construction of a major component rebuild centre, which will allow for major components to be re-built while fostering technical training opportunities. XCMG have also committed to making >75% of purchases from local suppliers, offering nearly 50 annual scholarships to primary and secondary school students.
“The Simandou project can be a key driver of growth in Guinea – catalysing a new wave of investment, building the country’s entrepreneurial fabric and supporting development across the country. Through the promotion of local content and investment in local communities—both of which are embedded in this contract award—we can unlock the project’s full transformative potential.” said Aboubacar Koulibaly, Head of Rio Tinto Guinée.
“We are proud to participate in this extraordinary project, which belongs to the people of Guinea and future generations” he added.