Guinea in talk with Chinese fund on resources investment
Thursday, 15 Oct 2009
FT reported that Guinea is talking to a Chinese fund about possible financing of billions of dollars for infrastructure, minerals and oil projects.
Mr Mohamed Thiam Guinea minister of mines said that negotiations with the unidentified fund may be completed by the end of the year. He added that the talks involve deals worth as much as USD 7 billion. Guinea, Hong Kong based China International Fund and the Angolan state oil company has signed a MoU to explore for oil.
Guinea's military junta has been criticized by the African Union, European Union, Economic Community of West African States and United Nations for crackdowns on protesters. The junta, led by Moussa Dadis Camara, is also in disputes with mining companies including United Co. Rusal and Rio Tinto Group. Guinea is the world’s biggest exporter of bauxite, a raw material used in aluminum production.
Guinea ordered Rio Tinto in December to hand over the northern half of the Simandou iron ore deposit to BSG Resources, a closely held company controlled by Israeli diamond investor Beny Steinmetz. Rio, which plans to develop a USD 6 billion project at the site, has told the government it has a legal claim to the whole deposit.
Melbourne based BHP Billiton Limited is also building an alumina refinery in Guinea in a venture with partners including New York based Global Alumina Corporation.
