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China offered $20 billion worth of loans to Guinea in return for bauxite rights
Sep 09, 2017

CHINA OFFERED $20 BILLION WORTH OF LOANS TO GUINEA IN RETURN FOR BAUXITE RIGHTS

ON WEDNESDAY, CHINA AGREED TO PROVIDE $20 BILLION IN LOANS TO GUINEA IN 20 YEARS IN RETURN FOR BAUXITE RIGHTS.

GUINEA, LOCATED IN THE WEST OF AFRICA, IS RICH IN BAUXITE RESOURCES. THIS BATCH OF LOANS TO ENSURE PROJECT PLANNING, INCLUDING THE CPI OF ALUMINA PLANT IN BAUXITE AND ALUMINUM COMPANY OF GROUP OF INTERNATIONAL COOPERATION CHINA ANOTHER HENAN BAUXITE PROJECT. THE PROJECTS ARE LOCATED IN BOFFA TOWN, NORTHWEST OF GUINEA.

GUINEA MINING MINISTER ABDOULAYE MAGASSOUBA SAID THAT THESE ARE THE THREE MAJOR PROJECTS IN A PERIOD, THE PROCEEDS GENERATED BY THE PROJECT WILL BE USED TO REPAY THE DEBT.

GUINEA'S MINING MINISTER ALSO POINTED OUT THAT THE LOAN WOULD BE USED FOR MUCH-NEEDED INFRASTRUCTURE. GUINEA IS ONE OF THE MOST UNDERDEVELOPED COUNTRIES IN THE WORLD. CHINA TENDS TO ACCESS AFRICA'S RESOURCES IN THE FORM OF "ROAD FOR MINERALS".

THE PROPOSED PROJECTS INCLUDE ROAD CONSTRUCTION IN THE CAPITAL OF GUINEA, THE CONSTRUCTION OF A MOTORWAY TO CONAKRY PORT, A POWER LINE, AND THE CONSTRUCTION OF A UNIVERSITY.

CHINALCO SAID LAST MONTH IT PLANS TO INVEST $500 MILLION IN THE BAUXITE PROJECT AT BOFFA, ABOUT 200 KILOMETERS FROM THE CAPITAL CONAKRY. THE PROJECT WAS ABANDONED BY BHP BILLITON IN 2013.

GUINEA, THE LEADING PRODUCER OF BAUXITE IN AFRICA, HOLDS SOME OF THE WORLD'S MOST ABUNDANT BAUXITE AND IRON ORE DEPOSITS, INCLUDING THE SIMANDOU IRON DEPOSIT, WHICH IS STILL IN DEEP LEGAL INTEREST AND IS STILL A CAUSE OF GREAT INTEREST IN CHINA.








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