China has offered Guinea a $20 billion loan in exchange for a concession on bauxite, an ore of aluminum, Guinea’s Mines Minister Abdoulaye Magassouba revealed to Reuters.
The deal, which was structured by both countries, will see China acquire bauxite from Guinea, which is richly endowed in the resource.
Specifically, it will go into the development of three key projects including the China Power Investment Corp’s (CPI) planned alumina refinery, the Aluminium Corp of China’s bauxite mine and another bauxite project by China Henan International Cooperation Group.
“Those are the three projects targeted as priorities for the first phase,” Magassouba told Reuters. “The revenues these projects generate will serve as reimbursement for the loans.”
The Minister confirmed that the loan will be invested in shoring up the country’s infrastructure deficit.
Guinea ranks first in the world in bauxite reserves and 6th in the extraction of high-grade bauxite, the aluminium ore. The country accounts for 94 percent of Africa’s mining of bauxite.