Simfer Awards Contract to Xuzhou Construction Machinery Group for Procurement of Heavy Mobile Equipment
SimFer, the joint venture between the Government of the Republic of Guinea, Rio Tinto and Chalco Iron Ore Holdings (CIOH), today formalized during a signing ceremony the award of a contract worth more than US$110 million to Xuzhou Construction Machinery Group (XCMG), for the procurement of heavy mobile equipment, spare parts, and associated maintenance services.
This contract is essential to strengthen SimFer’s production capabilities and offers significant opportunities for the development of local communities. XCMG is committed to making significant investments to support community development initiatives, enrich training programs, develop local procurement and increase employment opportunities.
XCMG will supply a full range of heavy mobile equipment for the SimFer mine site. This equipment includes approximately 34 230-ton trucks and 6 motor graders for the project. The contract also includes the provision of comprehensive maintenance services and spare parts, provided by the supplier.
Chris Aitchison, Managing Director of SimFer, said: “Following a rigorous competitive bidding process, we are pleased to award the heavy mobile equipment contract to world-renowned supplier XCMG. This contract, which includes strong commitments to community development and technical training, demonstrates our partners’ commitment to maximising the benefits of the Simandou project, with a strong focus on local content, prioritising local employment and improving professional and technical skills.”
As part of the contract, XCMG has committed to investing significantly in local community and environmental initiatives. The company plans to build a remanufacturing center, which will enable the recycling of major components and provide technical training opportunities. XCMG has also committed to making more than 75 percent of its purchases from local suppliers and providing nearly 50 scholarships annually to primary and secondary school students.
“The Simandou project can be a key driver of growth in Guinea, catalysing a new wave of investment, strengthening the entrepreneurial fabric and supporting development across the country. By promoting local content and investing in local communities—two key elements of this contract—we can unlock the full potential of this transformative project,” said Aboubacar Koulibaly, CEO of Rio Tinto Guinea.
“We are proud to participate in this extraordinary project, which belongs to the Guinean people and their future generations,” he added.
