The first commercial shipment of iron ore from Guinea's Simandou mine has set sail for China, marking a significant shift in the global supply of steelmaking materials.

The Winning Youth vessel, loaded with iron ore worth $23 billion, departed from Guinea and is expected to reach China in mid-January. 

The Simandou project, a large-scale iron ore mine jointly developed by Rio Tinto, Winning Consortium Simandou, and other Chinese firms, will provide China with an alternative to traditional suppliers such as Australia and Brazil.

The project has boosted freight demand, lifting Capesize shipping rates to a two-year high.