Mining resumes at Baowu-led Simandou site as workers end strike, document

DAKAR, May 7 (Reuters) - Mining ​operations ⁠resumed on Thursday at two blocks of ​Guinea's giant Simandou iron ore project operated by a consortium led by China's Baowu Resources after ​workers ‌ended a strike, according to a document seen by Reuters and a union executive.

* ⁠Workers at Simandou’s blocks 1 and 2 ⁠mine, operated by Baowu Winning Simandou ​Consortium (BWCS), went on strike on April 28, urging the company to comply with Guinea’s mining labour regulations on pay.

* BWCS workers said the company failed to apply ​a ‌unified mining pay structure introduced by Guinea last year. Baowu said it was in compliance with all Guinean regulations on labour and wages.

* A union executive and a BWCS source said operations at the mine resumed Thursday morning following ​an agreement, seen by Reuters, that was signed on Wednesday between management, union representatives ‌and Guinea’s labour and mining officials.

* The immediate focus is on resuming operations while continuing talks with unions ‌to fully resolve the dispute, the BWCS source said.

* Under the deal, BWCS committed to applying the national collective agreement for the mining sector signed in February 2025, ​maintaining agreed worker classifications, and ensuring that changes do not reduce existing pay entitlements.

* The ‌agreement sets fixed pay increases for different job grades.

* Management and unions will hold further talks under the supervision of Guinea's labour inspectorate to resolve outstanding classification ⁠issues by ⁠May 20.

* Upon signing the accord, workers and ‌BWCS pledged to comply with labour laws governing strikes and to resume operations immediately, according to the ​agreement.

* Baowu, the ​world’s largest steelmaker, took control of blocks 1 and ‌2 of Simandou this year. The remaining half – blocks 3 and 4 – is operated by Simfer, a Rio Tinto-led joint venture.

Rio Tinto