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China will invest a huge amount in a major project – La Nouvelle Tribune

China will invest a huge amount in a major project – La Nouvelle Tribune

A new agreement has just been concluded in the Guinean mining sector, promising a massive injection of foreign funds to exploit the iron ore deposits in Simandou. The latest announcement, which mainly involved Chinese partners, has raised optimism about economic development and concerns about foreigners seizing national wealth.

Key to this agreement is an impressive $15 billion, earmarked for the exploitation and development of infrastructure associated with the Simandou iron deposit. This huge project, one of the largest of its kind in the world, provides for the construction of a railway network with a length of more than 600 kilometers as well as the construction of an export port on the Atlantic Ocean. It is an initiative that, according to the Guinean authorities, should be operational by the end of 2025.

The formalization of this agreement, which will take place on April 8, 2024, represents a major step in the realization of this long-awaited project. Jiba DiakiteThe Chief of Staff of the Guinean Presidency and Chairman of the Project Monitoring Committee, speaking about this progress, confirms with full conviction that Simando It is no longer a simple dream, but a reality in progress. The guarantee is intended to provide reassurance regarding compliance with set deadlines for completion of this major project.

However, behind the enthusiasm generated by this announcement, there are important nuances. While Guinea sees this agreement as an opportunity for economic development and investment in critical infrastructure, some observers are concerned about the increasing dominance of Chinese interests over the Guinean mining sector.

Fears…

In fact, a more in-depth analysis reveals that almost all of the profits from this pharaonic venture go to Chinese partners, leaving little room for local players to leverage their own resources. The four deposit blocks Simando It is therefore shared equally between two joint ventures, one of which is majority controlled by Chinese interests. This foreign control over national wealth raises legitimate concerns about economic sovereignty and the equitable distribution of benefits among the population of Guinea.

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However, the Guinean authorities insist on the positive benefits expected from this project for the national economy, especially with regard to job creation and infrastructure development. They also stress that the presence of foreign partners, especially Chinese, is necessary to mobilize the huge investments necessary to complete such a project.