Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) has confirmed the cost of the Simandou iron ore project in Guinea will be US$6.2 billion.
Described as the world's largest untapped high-grade iron ore deposit, the project is a central focus of the mining major's expansion strategy.
It is a joint venture with partners including a Chinese consortium and the Republic of Guinea.
Slated to start production in 2025, the mine will have an annualised capacity of 60 million tonnes a year.
The largest untapped iron ore resource in the world, and high-grade direct shipping ore, Simandou is estimated to be host to a resource of 2.8 billion tonnes.
And in what will be the largest greenfield integrated mine and infrastructure investment in Africa, more than 600 kilometres of new multi-use rail together with port facilities will be developed.
"Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto's portfolio for the decarbonisation of the steel industry, along with trans-Guinean rail and port infrastructure that can make a significant contribution to the country's economic development," said Rio executive Bold Baatar.