Guinea+Infrastructure

= =

Executive Summary:
It is highly likely that Chinese companies will continue to fund infrastructure projects within Guinea that correspond to strategic mineral projects, specifically ones that correspond with the Simandou iron ore project and the development of bauxite in the Boffa region. Over the past five years, Chinese companies, including China Power Investment Corporation (CPI), China International Fund (CIF), and China Aluminum Corporation (Chalco), have invested or pledged to invest approximately USD 10 billion in infrastructure projects corresponding to strategic minerals endeavors. Both the Simandou iron ore project and the development of bauxite production in the Boffa region will likely bring large amounts of investment to the region due to their large potential for profit.

Discussion:
Over the past five years, Guinea has received approximately USD 10.4 billion in investments spread across 6 infrastructure projects. Of these, 3 corresponded directly with PNGSM projects in the country totaling to roughly USD 10 billion. In 2010, Chalco and Rio Tinto joined into a venture together to development the Simandou iron ore mine. Chalco would invest USD 1.35 billion for a 44.65 percent stake in the project. The project is divided into three sections: the iron mine itself, a Trans-Guinean railway 670 km long stretching from the mine to the coast, and a new deepwater port south of Conakry in the Forecariah prefecture. The project is expected to go into operation by the end of 2014 and start delivery of iron ore during 2015. In 2011, CPI stated their intentions to invest USD 5.8 billion to develop bauxite production in the Boffa region of Guinea. This development included a variety of infrastructure projects, specifically the construction of an alumina refinery with an initial capacity of 4 million tons per year, a deepwater port, and a power plant. The refinery would be only the second alumina refinery in the country allowing for a major increase in bauxite processing.

In 2010, CIF funded the Kalia iron ore project operated by Bellzone Mining, a Channel Island mining company. CIF and Bellzone Mining formed a 50-50 joint venture with CIF agreeing to fund infrastructure projects in Kalia including a rail system, bulk storage facilities, and the construction of a port in Konta. CIF's total promised investment was USD 2.7 billion for the facilities and USD 1.2 million for the construction of the mine itself. Construction on the Konta port commenced in 2012.


 * Date || Cost (USD) || Location || Key Chinese Companies Involved || Description || Corresponds to ||
 * 2011 || 436 million || 150 km northeast of Conakry || China International Water and Electric Corporation || Construction of a 240.5 megawatt hydroelectric plant || Misc. ||
 * 2008 || 10 million || Kipe || China government || Construction of Kipe International Hospital || Misc. ||
 * 2012 || N/A || N/A || China government || Construction of a new railway || Misc. ||

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal