Guinea Talking to Chinese Fund on Resources Investment, FT Says

Guinea is talking to a Chinese fund about possible financing of billions of dollars for infrastructure, minerals and oil projects, the Financial Times said, citing Guinea Minister of Mines Mohamed Thiam.

Negotiations with the unidentified fund may be completed by the end of the year, the FT said, citing the minister, who added that the talks involve deals worth as much as $7 billion. Guinea, Hong Kong-based China International Fund and the Angolan state oil company have signed a “memorandum of understanding” to explore for oil, the paper said.

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.

Before a Sept. 28 crackdown in which 130 people were killed, Guinea’s government asked Rusal, the world’s largest aluminum producer, to return a bauxite and alumina complex at Friguia after a court ruled that its purchase was invalid.

Guinea ordered Rio Tinto, the world’s third-largest mining company, 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 $6 billion project at the site, has told the government it has a legal claim to the whole deposit.

The junta is also reviewing accords between the previous government and companies including AngloGold Ashanti Ltd.

Melbourne-based BHP Billiton Ltd., the world’s largest mining company, is also building an alumina refinery in Guinea in a venture with partners including New York-based Global Alumina Corp.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.