Asia > Eastern Asia > China > China to Loan Guinea US$20 Billion for Access to Bauxite Reserves

China: China to Loan Guinea US$20 Billion for Access to Bauxite Reserves


The Republic of Guinea will be the recipient of a US$20 billion loan from the People’s Republic of China in exchange for concessions on its significant bauxite ore reserves.

According to reporting yesterday by Reuters, the loan will be disbursed over twenty years. The loan will be guaranteed by in-country projects 125 miles northeast of Conakry at Boffa inclunding China Power Investment Corp’s (CPI) planned alumina refinery, a bauxite mine operated by the Aluminium Corporation of China Limited (Chalco), and a bauxite-mining project operated by China Henan International Cooperation Group.

“Those are the three projects targeted as priorities for the initial phase,” explained Guinea’s Mines Minister Abdoulaye Magassouba. “The revenues these projects generate will serve as reimbursement for the loans.”

He went on to say that the money will be used for significant infrastructure upgrades. Improvements expected to be funded by the loan include roads in and to the capitol Conakry, enhancements to Conakry’s port facilities, electrical transmission lines, and the construction of a new university.

The just-announced loan comes on the heels of the announcement of Chalco’s US$500-million investment in a bauxite ore project in the country. That project, which is to be carried out in the Boké Region, is the initial in a three-phase plan that will from presently on yield primary aluminium production. According to Reuters, the Chalco project has been in the works for the completed five years and is projected to be worth around US$6 billion.

Guinea sits atop the major reserves of bauxite of any country on Earth, boasting reserves of up to forty billion tons. Rio Tinto and Alcoa both have substantial operations in country, as do China’s Hongqiao and Russia’s Rusal. The Middle Kingdom has been angling for increasing its presence in the Guinean bauxite market for several years, with exports from Guinea to China expected to double in the course of the current year.

Related Articles
  • Chinese official expresses concern over political unrest in Pakistan

    2017/11/22 A top Chinese official has expressed concern over the prevailing political instability in Pakistan that could negatively impact the pace of the projects started under the ambitious USD 50 billion CPECBSE -4.45 % initiative, according to a media statement today. The Chinese delegation expressed weariness during the Joint Cooperation Committee (JCC) of the China-Pakistan Economic Corridor (CPEC) conference held here yesterday.
  • The Belt and Road Initiative and Asia’s changing order

    2017/11/15 In the two days of meetings from 8 November between President Donald Trump and President Xi Jinping in Beijing on Trump’s initial national visit, it appears that they did not talk at all about the Belt and Road Initiative (BRI). Trump’s tour reflected the tendency of his government to see Asia entirely through the lens of bilateral ties and crises. US Secretary of National Rex Tillerson and Trump have stated that the United States seeks to sustain and protect a free and open Indo-Pacific, but the inability to match that concept with either a meaningful strategic vision or substantive policy was plainly on display.
  • China, Vietnam Reach 'Consensus' To Uphold 'Peace In South China Sea'

    2017/11/13 Vietnam, the Philippines, Malaysia, Brunei and Taiwan as well have claims in the South China Sea, and the dispute has long been seen as a potential trigger for conflict in Asia. The Communist leaders of China and Vietnam reached a "consensus" on handling the contested South China Sea, Chinese national media reported Sunday, hours next US President Donald Trump offered to mediate in the dispute. Chinese President Xi Jinping met with Vietnamese Communist Party chief Nguyen Phu Trong during a national visit to Hanoi on Sunday, next Trump as well visited the country.
  • Saudi Arabia’s Footprints in Southeast Asia

    2017/11/02 At the same time as King Salman bin Abdulaziz Al-Saud of Saudi Arabia embarked on a month-long trip to Asia in February this year, Western media outlets led with incredulous stories about the monarch’s large entourage and their mountain of luggage. Traditionally obsessed with the desert kingdom’s human rights record and the national-sponsored brand of Islam, those same outlets took delight in touting the trip as a sign of Saudi economic weakness.