- Rio Tinto has named AtkinsRéalis (TSX:ATRL), formerly SNC-Lavalin Group, as integrated delivery partner for the Simandou mining project in Guinea, which houses the world’s largest untapped high-grade iron ore deposit
- Simandou’s high-grade iron can be used to make lower-emission steel, a key catalyst toward 2050 net-zero emissions targets
- AtkinsRéalis is a professional services and project management company focused on the engineering services, nuclear, operations, maintenance and capital sectors
- AtkinsRéalis stock (TSX:ATRL) is up by 80.65 per cent year-over-year, but has lost 6.90 per cent since 2018
Rio Tinto has named AtkinsRéalis (TSX:ATRL), formerly SNC-Lavalin Group, as integrated delivery partner for the Simandou mining project in Guinea, which houses the world’s largest untapped high-grade iron ore deposit.
AtkinsRéalis’ Minerals & Metals team will deliver project and construction management, engineering and technical compliance, as well as contract management services over the multi-year contract, which is the largest in the mining sector for the company over the past 10 years.
Simandou is positioned to benefit from the push towards 2050 net-zero emissions targets because of its high-grade resource. Iron is the most used alloy in the world and the main component of steel, which is responsible for approximately 8 per cent of global carbon emissions. With global steel consumption expected to grow by 1-2 per cent over the next decade, steelmakers are keen on reducing their environmental impact through high-grade iron like Simandou’s, an essential ingredient for lower-emission steel production.
AtkinsRéalis’ believes the project will “significantly increase mobility, economic opportunity, and the standard of living for current and future generations of Guineans,” according to Tuesday’s news release.
Simandou is jointly owned by Rio Tinto (45.05 per cent), CIOH (39.95 per cent) and the Government of the Republic of Guinea (15 per cent).
“There is no net-zero future without sustainable mining and we’re thrilled to bring our mining expertise to such a significant and transformative project,” Ian L. Edwards, president and chief executive officer of AtkinsRéalis, said in a statement. “From the lithium in batteries to the silicon in solar panels, critical minerals are needed to produce the clean power, decarbonized infrastructure and new forms of transportation that accompany a net-zero world.”
César Inostroza, chief executive officer of the AtkinsRéalis Minerals & Metals team, added: “Decarbonizing future infrastructure projects means looking at end-to-end construction and engineering processes, including steel production. New infrastructure builds are only increasing in frequency and scale as public and private-sector clients look to decarbonize, manage climate risk and build climate resiliency. Simandou’s first-class iron ore deposit will be a vital ally to the world’s net-zero transition, producing the lower-carbon intensity steel needed for these sustainable infrastructure new builds. Throughout our mandate at Simandou, a top priority is to deploy the full breadth of our engineering net-zero capabilities to ensure sustainable mining solutions are prioritized at all stages. Not only will we be responsible stewards of the land, but we look forward to providing social value and economic opportunities for current and future generations of Guineans.”
AtkinsRéalis is a professional services and project management company focused on the engineering services, nuclear, operations, maintenance and capital sectors. It offers end-to-end services across consulting, advisory and environmental services, intelligent networks and cybersecurity, design and engineering, procurement, project and construction management, operations and maintenance, decommissioning and capital.
AtkinsRéalis stock (TSX:ATRL) last traded at C$41.44 per share. The stock is up by 80.65 per cent year-over-year, but has lost 6.90 per cent since 2018.
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