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Guinea signs $7B mining deal with Chinese firm
(Agencies)
Updated: 2009-10-14 10:03

CONAKRY, Guinea: Guinean government said it has signed a $7 billion mining agreement with a Chinese company.

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Mines Minister Mahmoud Thiam did not name the company involved but said Tuesday that the Chinese firm "will be a strategic partner in all mining projects" in the West African country.

Guinea is the world's largest producer of bauxite, the raw material used to make aluminum, and also produces diamonds and gold.

Thiam said the Chinese mining projects will help Guinea's poor and dismissed criticisms that such a deal should have waited until after next year's elections.

"We are in a transition putting down foundations and hope the next government will follow suit," Thiam said.

Africa's trade with China reached more than $100 billion in 2008 and has multiplied by 10 since 2001, according to the African Economic Outlook.

The arrival of the Chinese puts them in direct competition with the American-owned Guinea Bauxite Company CBG and the Russians' RUSAL.

 

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