Chinese Government and Government of Ghana sign $10 billion for Bauxite Project

Chinese Government and Government of Ghana sign $10 billion for Bauxite Project According to Ghana's Senior Minister Yaw Osafo-Maafo, on June 28, 2017, the Chinese Government signed a memorandum of understanding worth USD $10 billion (10,000,000,000) with the Government of Ghana for the development of its bauxite industry.

The agreement outlines plans for the construction of 4,000km of railway, new aluminum production facilities, and various other infrastructure projects.

According to Reuters, the funding will reportedly come from China Development Bank, and the project itself would be implemented by infrastructure agencies from China, such as China Railway.

The initial funds would go to the construction of 1,400 km of a planned 4,000 km railway network, which will connect bauxite mines and production sites as well as establish a rail link into Burkina Faso.

Some sources report that the deal includes a permanent 5% equity stake taken by the Chinese Government in Ghana's total bauxite reserves, which are estimated to be worth roughly $460 billion, As of April 2020, the exact nature of this deal were yet to be defined. A separate, $2 billion bauxite-for-infrastructure deal with Sinohydro (see #60154) was signed on the same day.