Hogan Lovells advises China Baowu on its acquisition of an additional 2% stake in mining blocks 1 and 2 of the Simandou Project
Beijing, 16 February 2026 - Global law firm Hogan Lovells continues to support its longstanding client and the world's largest steelmaker, China Baowu Steel Group (Baowu), in the landmark Simandou iron ore mining and infrastructure project in the Republic of Guinea.
On 30 January 2026, Baowu (through its relevant affiliate) completed the acquisition of an additional 2% stake in mining blocks 1 and 2, increasing its shareholding to 51%. This latest transaction marks another significant milestone for Baowu in the Simandou project after the completion of Baowu's initial investment in June 2024, and the project's commencement of first commercial production in December 2025. Baowu's strengthened position in mining blocks 1 and 2 further cements its role as a key player in the Simandou project as the project moves into full operations.
As Baowu’s long-term legal advisor on the Simandou project, the Hogan Lovell’s team, led by Beijing based M&A partner Liang Xu, provided comprehensive support for this acquisition. The team leveraged its long-term involvement and deep understanding of the Simandou project to ensure the smooth execution of the transaction.
Hogan Lovells will continue to support Baowu on the Simandou project and drive the continued success of the development and operation of the mine and infrastructure components of the project.
Click here to view previous press releases about this matter:
Hogan Lovells advises China Baowu on the largest mining and infrastructure project in Africa.
About the Simandou Project:
Simandou is the world's largest newly developed, high-grade iron ore reserve. The Simandou project stands as the largest mining and infrastructure project in Africa and in the world with a total required investment of reportedly more than US$20billion. It encompasses four mining blocks, two ports, and a 600+ km railway line crossing the entire country connecting the mines to the ports. The multi-user railway infrastructure is expected to provide connectivity to passengers, small businesses and other industrial users across the country and will have a transformative impact on the Guinean economy.
The owners of the mines and the co-developers of the infrastructure are, on the one hand, a joint venture between Baowu and Winning Consortium Simandou (WCS, a consortium comprising Asian investors including Winning International Group and Shandong Weiqiao Pioneering Group) and, on the other hand, Simfer (a joint venture between mining giant Rio Tinto and a consortium of Chinese investors led by Chinalco, the world's largest aluminum producer).
As a strategic project between China and the Republic of Guinea, Simandou is planned to produce 120 million tons of high-grade iron ore annually. Its successful development will have a transformative impact on the Guinean economy and its people, and bring green solutions to the steel making industry in China and around the world.
