Major Port and Rail Projects Planned for Guinea, West Africa

Bellzone Mining and China International Fund have signed a binding memorandum of understanding on financing $2.7 billion in infrastructure for Bellzone’s estimated 2.4 billion metric ton Kalia Iron Project in Guinea, West Africa.

If all agreements are reached, CIF will fund for Bellzone a 286-kilometer rail system including rolling stock, bulk storage facilities, power development and a port with loading facilities and services able to handle at least 50 million metric tons of iron ore annually, according to a statement from Bellzone.

The new infrastructure at Kalia will form the “first leg” of a multi-user railway and port. Mahmoud Thiam, Minister of Mines and Geology of the Republic of Guinea, said “This creates the most strategic link of the transport network required to unlock Guinea’s iron ore potential. It puts two mines on line within four years instead of one and multiplies annual mining revenue tenfold in a short time. It’s historical and transformational.”

CIF was established in Hong Kong in 2003 and exists to expand Chinese enterprises overseas and enable developing countries to build major projects. CIF’s investments include public housing and utilities; water and power projects; highways, railways and airports; and shipbuilding and shipping.

CIF and its associated companies have invested approximately $20 billion in Africa and, in 2009, CIF agreed to invest $7 billion in Guinea in return for mining, oil and gas rights, according to Industrial Info Resources. Other global mining companies including Vale, Rio Tinto and the Aluminum Corp. of China are also developing projects in Guinea.

Bellzone Mining is an iron-ore exploration and development company with assets in Guinea, West Africa. It owns 100 percent of the Kalia iron deposit. Bellzone is listed on the London stock exchange and is registered in Jersey, UK with offices in Guinea and Perth, Australia.