Output, expected to eventually peak at some 120 million metric tons a year, heads to the market this month.0 seconds of 0 secondsVolume 0%

West African nation holds 15% stakes in mines and infrastructure

– Guinea is seeking to keep global prices for premium iron ore high, senior officials said, as output from its giant Simandou project, expected to peak at some 120 million metric tons a year, heads to the market this month.

That may put it at odds with the mine’s main owner and customer, China, which consumes more than 70% of the steelmaking material globally, and has moved to centralize imports and drive down prices.

The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.

Advertisement · Scroll to continue

Simandou is 75% Chinese-owned, meaning three-quarters of its output will head to China.

“Our main interest is to keep prices high,” Guinea’s Minister of Mines Bouna Sylla said in the capital Conakry. He gave no details, but said Conakry will tap Rio Tinto’s (RIO.L), opens new tab expertise.

Ownership of Simandou is split between a consortium of Rio and Chinese state-owned Chalco (601600.SS), opens new tab, and WCS, a Singaporean-Chinese consortium. Chinese state-owned giant Baowu has shares in WCS, and is also an indirect shareholder in Rio’s joint venture Simfer.

Iron ore prices hit their lowest level since July this week as China demand fears and swelling inventories dragged on prices, highlighting fragile fundamentals despite supply hiccups offering brief support.