China, Guinea sign $7 billion mining deal

The Guinean government has signed a $7 billion deal with a Chinese company to create a mining joint venture in the world's largest bauxite supplier.

This deal puts China in direct competition with international miner,s Rio Tinto, American-owned Guinea Bauxite Company CBG, and the Russia’s RUSAL.

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

Cooperation between China and Guinea has been in line with the interests of people in both countries, said Ma Zhaoxu, spokesman for China's Ministry of Foreign Affairs.

This cooperation between developing countries followed market rules and international practice, based on principles of equality and mutual benefit, said Ma.

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.

Guinea is the world's largest producer of bauxite, a raw material used to make aluminum, and the country also has abundant resources in diamonds and gold.

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