(Adds quote, details) DAKAR, Nov 13 (Reuters) - A consortium of...

(Adds quote, details)

DAKAR, Nov 13 (Reuters) - A consortium of Guinea's Societe Miniere de Boke (SMB) and Singapore's Winning said on Wednesday that it had won a tender to develop blocks 1 and 2 of Guinea's giant Simandou iron ore project, edging out Australia's Fortescue (FMG) .

The award brings the companies one step closer to developing the mine, which holds over 2 billion of tonnes of high-grade ore, the largest known deposit of its kind in the world, but which has been held up by legal disputes and high costs.

SMB-Winning said in a statement that it would build a 650 km (404 mile) railway and deepwater port to transport the ore from the remote southeastern corner of Guinea to the Guinea coast for export.

"The Simandou Project will be crucial for Guinea's future. This mega deposit is an opportunity in terms of employment and wealth creation for the whole country," said Sun Xiushun, the chief executive of the consortium.

Fortescue was not immediately available to comment. The two blocks became available after a settlement in February between Guinea's government and Israeli billionaire Beny Steinmetz's BSG Resources following a protracted legal dispute.

Blocks 3 and 4 of the mine are owned by a joint venture of Rio Tinto RIO.L , China Aluminium Corp (Chinalco), and the Guinean government.

SMB-Winning's investors include Chinese aluminium producer Shandong Weiqiao and the Yantaï Port Group

, and it is Guinea's leading exporter of bauxite, an aluminium ore.