China, the world’s largest iron ore consumer, has received its first shipment of iron ore from the Simandou mine in Guinea, West Africa, a project in which Beijing has heavily invested to enhance supply security. China imports around 80% of its iron ore from Australia and Brazil and has been working to diversify sources by expanding domestic output and investing in overseas mines.

China Baowu Steel Group, the world’s largest steel producer, said a vessel carrying nearly 200,000 metric tons of Simandou iron ore arrived at Majishan port in Zhejiang province on January 17 after a 46-day voyage. Simandou has a planned annual production capacity of 120 million tons, with four blocks producing high-grade ore containing 65% iron.

Key investors in the four blocks include Rio Tinto, China-owned Chalco, and Winning Consortium Simandou (WCS), a Singaporean-Chinese partnership. China Baowu also became a major shareholder following the transfer of rights from WCS. Beijing established China Mineral Resources Group in 2022 to centralize iron ore purchases and secure better terms from miners.