Clyde & Co has advised the Guinean government on the Simandou South iron ore mining project Investment Framework which was signed with Rio Tinto, Chinalco and The International Finance Corporation, a member of the World Bank, in Conakry, the Guinean capital, on 26 May 2014. The next step is the finalisation of the Bankable Feasibility Study in early 2015.
Clyde & Co was parachuted into the deal by the Guinean government in late November in order to negotiate the Investment Framework, which has a complex and protracted history. This meant Clyde & Co had to get to grips with the documentation very quickly. The Investment Framework sets out the basis for progressing and funding the project, but also reflects key Government policy objectives such as the multi-purpose use of the transport infrastructure and development of the local economy. Although the Trans-Guinean railway is being built to transport ore from Simandou-South, the Government has negotiated for the railway to be used for public transport and general cargo delivery as well.
The project will create huge local employment possibilities, as well as provide a catalyst for developing a new regional growth Southern growth corridor. In addition, a percentage of project turnover will go towards helping the Government develop local infrastructure such as hospitals, roads and schools.
Philip Rogers, corporate partner at Clyde & Co leading the project, said:
“Clyde & Co is very pleased to have assisted the Guinean government in achieving this major step in the development of the project and to help get it signed in record time. The documentation is very complex, and achieves a delicate apportionment of risk both as between project participants and as between the rail and port part of the project and the mine. Critically, it sets out a road map for project delivery and gives each party clear rights and obligations going forward.”
Abdoulaye Magassouba, Special Project Adviser to the President, said:
“We were very fortunate to have engaged Clyde & Co on this project. They quickly assembled and deployed a team and worked phenomenally hard. They listened to us and understood what we needed and were relentless in delivering it.
Saadou Nimaga, Legal Adviser to the Mining Minister, said
“Clyde & Co immediately understood the stake and importance of this project for the country and produced very precise reports and commentaries on documents which had previously been held up for months. This ability as well as their ability to listen to governmental input at the highest level during the working group meetings formed the basis for the breakthrough in the negotiations.
“I was impressed by the quality and speed of their turn-around, and their ability to work seamlessly between French and English. This was really helpful as it avoided misunderstanding or delays through translation issues. As soon as I saw the high legal and technical quality of their written work, I knew we were in good hands.”
A number of specialist Clyde & Co partners have worked on the corporate, rail and port infrastructure aspects of the project and the team includes lawyers from the firm’s UK, Paris and Middle Eastern offices. Alongside Philip Rogers, the group includes:
- Nigel Taylor (London Corporate)
- Marie Fong Sing (London Corporate)
- Michael Conrad (Paris Transportation)
- Amir Kordvani (Abu Dhabi Projects)
- David Moore (London Projects)
- Adrian Creed (Abu Dhabi Projects)
- Andrew Kelmanson (London Corporate)
- Maurice Kenton (London, Arbitration)
- Simon Schooling (London, Arbitration)
The Simandou project is one of the world’s largest untapped high quality iron ore deposits, located in the south east of Guinea.
Due to start commercial production by 2018, it will be the largest integrated iron ore mine and infrastructure project in Africa, with the potential to transform the development of Guinea’s economy and transport infrastructure.
The project includes the construction of a 700km railway and the development of a deep water port south of Conakry.
