| Chinese firm to make $2.6bn investment in Liberian iron | | | | said. |
| ore mining | | | | SIGNATURE BONUS |
| China Union intends to spend US$2.6bn to bring the | | | | Before its 1989-2003 civil war, Liberia was the world's |
| Bong iron ore deposit to production within two years, | | | | fifth largest producer of iron ore, and foreign |
| and will also recondition the capital's port and build a | | | | investment in the mineral is a centrepiece of President |
| hydro power plant. | | | | Ellen Johnson-Sirleaf's stratgegy of economic rebuilding. |
| A Chinese firm will make the biggest ever investment | | | | China(cnmining) Union intends to bring the Bong deposit, |
| in Liberia when it signs a $2.6 billion iron ore deal in | | | | to the north-west of capital Monrovia, to production |
| January, the West African nation says. | | | | within two years, and will also recondition the capital's |
| The 25-year project to be undertaken by China Union | | | | port and build a hydro power plant to supply the city, |
| <000036.SZ> will directly and indirectly create | | | | Tolbert said. He did not give details of the overall size |
| 18,000 jobs, and give Liberia an immediate cash boost | | | | of the Bong deposit. |
| of $40 million on signature. | | | | Part of the deal is a $40 million signature bonus to be |
| "This is the biggest investment in our country's history," | | | | paid to the government, Tolbert said. "This amount will |
| Richard Tolbert, Chairman of the National Investment | | | | go into the government treasury for development |
| Commission, told Reuters late on Monday. | | | | purposes," he said. |
| The deal, which beat nine rival bids, will trump the | | | | A $300 million signature bonus paid by China National |
| world's largest steelmaker, ArcelorMittal which is | | | | Petroleum Corp to Niger for an oil deal earlier this year |
| spending $1.5 billion in Liberia, also on iron ore. | | | | drew criticism from rights groups, who said there was |
| Many firms have scaled back or postponed African | | | | insufficient transparency on how it would be spent. |
| mining projects as metals prices have crashed in the | | | | President Johnson-Sirleaf has promised zero tolerance |
| past six months, and most analysts believe a severe | | | | of corruption. In September, Liberia disqualified two |
| global recession will cut demand for industrial minerals | | | | companies from bidding for another mining project on |
| for years to come. | | | | grounds of previous "acts of violation" by the firms. |
| Tolbert said the timing of the Chinese investment was | | | | As well as iron ore, Liberia aims to develop offshore oil. |
| a vote of confidence in Liberia. | | | | Anadarko Petroleum , Hong Kong Tongtai Petroleum, |
| "In the midst of the global financial crisis ... this is really a | | | | Repsol and Woodside have signed exploration deals. |
| significant sign of the attractiveness of Liberia," Tolbert | | | | |