China firm to spend $2.6 bln on Liberia iron

 Chinese firm will make the biggest ever investment in Liberia when it signs a $2.6 billion iron ore deal in January, the West African nation says.

The 25-year project to be undertaken by China Union 000036.SZ will directly and indirectly create 18,000 jobs, and give Liberia an immediate cash boost of $40 million on signature.

"This is the biggest investment in our country's history," Richard Tolbert, Chairman of the National Investment Commission, told Reuters late on Monday.

The deal, which beat nine rival bids, will trump the world's largest steelmaker, ArcelorMittal (ISPA.AS)(MT.N)(MTP.PA) which is spending $1.5 billion in Liberia, also on iron ore.

Many firms have scaled back or postponed African mining projects as metals prices have crashed in the past six months, and most analysts believe a severe global recession will cut demand for industrial minerals for years to come.

Tolbert said the timing of the Chinese investment was a vote of confidence in Liberia.

"In the midst of the global financial crisis ... this is really a significant sign of the attractiveness of Liberia," Tolbert said.

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