Winning International Group is a prime example of how a Singapore-based company can take advantage of the city-state’s strategic benefits to grow its operations far beyond Southeast Asia. Its Simandou mine, nestled in Guinea’s mountainous region, is poised to make a notable impact on the global iron-ore market.
Why choose Simandou mine?
The Simandou iron ore project in Guinea is set to make a big splash with around 1.5 billion tonnes of high-grade ore in its reserves, this project aims to ramp up to an impressive annual production capacity of 60 million tonnes within the next 30 months. To support this, there’s a plan to build over 600 kilometers of rail and port facilities, making it easier to transport the ore to global markets. The sheer size and infrastructure of this project are expected to boost Guinea's role in the international iron ore supply chain, driving economic growth and development in the region.
Sun Xiushun, founder and chairman of Winning International, “Singapore has served as a “key enabler” in the group’s growth, from its beginnings in shipping to its mining and infrastructure businesses today.”
China-Singapore-Indonesia bauxite
Sun, a former sailor, made his way into Singapore’s shipping industry back in 2006. He took full advantage of the city-state’s strong financial, maritime and legal framework to create a bauxite corridor connecting China, Singapore and Indonesia. But when Indonesia imposed bauxite export restrictions in 2013, he cleverly pivoted to focus on upstream operations in Guinea, which is rich in bauxite, to keep his business running smoothly.
Sun co-founded SMB-Winning
In 2014, Sun took a big step by co-founding SMB-Winning, a company that brought to life the 125 km Dapilon-Santou railway, connecting the Santou mining area to the Dapilon port. This crucial infrastructure has enabled Winning International to ramp up its bauxite exports from about one million tonnes to an impressive 65 million tonnes each year. Concurrently, the company has grown its fleet to around 150 vessels, which includes 60 capesize dry-bulk carriers that together transport over 70 million tonnes of cargo annually.
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Winning Consortium secures northern Simandou mine concession (Blocks 1 & 2)
In 2019, Winning Consortium Simandou (WCS) took a significant step by securing the northern concession (Blocks 1 and 2) of the Simandou mine, with the first iron-ore shipments anticipated to start in November. Sun pointed out that the company’s transition from focusing on shipping and logistics to becoming a fully integrated mine-to-market developer highlights how being based in Singapore allows for a more effective utilisation of Africa’s resource corridors. By tapping into the strengths of the city-state in areas like ports, bunkering and ship financing, Singapore acts as a central hub for managing projects and setting standards, while also connecting continents and facilitating the exchange of infrastructure expertise and talent from China to Guinea.
All about WCS and its projects
WCS is a strategic alliance that brings together Singapore’s Winning International Group, China Hongqiao and United Mining Supply International (UMS). Back in November 2019, WCS clinched the mining concession for Guinea’s Simandou Blocks 1 and 2, which hold the title of the world’s largest untapped high-grade iron ore reserves, boasting over 1.8 billion tonnes with an iron content that surpasses 65.5 per cent. The consortium is leading the charge in developing a comprehensive mine-to-port infrastructure, which includes an open-pit mine, a 125 km railway, port facilities and even an airport.
Construction is already in full swing with the help of major international and local contractors and this ambitious project is set to create tens of thousands of direct and indirect jobs. WCS is dedicated to fostering local content and building capacity, ensuring alignment with Guinea’s mining code and international ESG standards.
Singapore businesses & Africa’s opportunities
Sun sees Africa as a vibrant market brimming with youthful populations and rich resources, making it an attractive opportunity for Singaporean companies eager to venture beyond the ASEAN region. He pointed out that Winning International’s experiences in Guinea could motivate more Singaporean businesses to look into the possibilities there, despite any perceived risks.
The chairman reinforced the company’s dedication to aiding Guinea’s industrial growth and enhancing economic and trade relationships between Singapore and West Africa, tapping into Singapore’s strengths in governance, economy, technology, trade and finance.
He further mentioned that Winning International plans to keep collaborating through consortiums and joint ventures across various sectors, from mining to manufacturing, sharing investment risks while leveraging its technical and managerial know-how.
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Sun highlighted electricity as a sector ripe for growth, envisioning a future for Africa’s power supply that combines clean energy sources like hydro and solar with thermal power.
Simandou’s ore and the challenge within
Simandou’s ore, with an impressive average of about 65.8 per cent iron content and minimal impurities, is a goldmine for top-notch feedstock to help cut down emissions. Once everything is up and running, the combined output from both the northern and southern sites is expected to hit as much as 120 million tonnes per year (mtpa), which would significantly boost the amount of high-grade ore available in global trade.
For Sun, the main hurdle went beyond just mining; it involved building a 600 km heavy-haul railway that stretches across Guinea, along with a brand-new coastal port. He pointed out that Winning International’s solid track record, especially with the Dapilon-Santou railway, played a big role in winning over Guinean authorities to back their Simandou proposal.
Currently, both mines are linked by spurs to the main line, creating Guinea’s longest modern railway. At the same time, a coastal transhipment terminal and barge facility, each capable of handling 60 mtpa, facilitates smooth capesize shipments to China and other key markets.
Beyond mining
WCS's involvement in Guinea is beyond just the mine-rail-port infrastructure, as it's deeply integrated into the local social and industrial landscape. Alongside its heavy-haul assets, the consortium has invested in and rolled out community initiatives, such as building two hospitals and improving local roads, while also launching training and scholarship programs in collaboration with institutions from Singapore.
Sun highlighted that the goal is to create a broader social impact from this single-commodity project, with plans to construct more schools and hospitals to boost healthcare, education, job opportunities and entrepreneurship as they ramp up iron ore production.
Industry forecasts suggest that by 2030, Simandou's output of 120 million tonnes per annum could represent 4.8 per cent of global supply and nearly 10 per cent of China's current imports. This increase in high-grade ore is anticipated to push the seaborne market into surplus by the mid-2030s, putting pressure on lower-grade, higher-cost producers, according to S&P Global Market Intelligence.
To know more about the global bauxite industry, read “A Comprehensive Analysis of Bauxite Residue - Red Mud”
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