China International Fund

Image source PANOS PICTURES

China International Fund was founded in Hong Kong in 2003, and is viewed as key part of the 88 Queensway Group, the Fund is primarily focused on Angolan infrastructure projects, such as mines, roads, housing and shipping. As well as targeting profits, the Group appear to be interested be non-financial aims, such as "south - south co-operation" and "opening up investment opportunities for Chinese Companies". The Group has been criticized in quarters for its infectiveness in implementing projects and more recently for its alleged activities in Guinea.

CIF in Guinea

China International Fund has been involved in a controversial deal in the West African state of Guinea. CIF are providing $2.7 billion to finance the infrastructure, namely the rail and port facilities to transport the iron ore for the Kalia iron ore mine, a deal came to light in the days following the massacres of opposition protesters in Guinea, which drew widespread international condemnation, but had been in the pipeline for a long time. However some commentators have cast doubt on CIF ability to provide funds, and have pointed to a patchy track record in African investment projects.

The Kalia iron ore project is Bellzone's flagship project, the first part of the Kalia project has identified a resource of 3.7 billion tonnes, while the second and third stages have identified a total of 13 billion tonnes. Bellzone have signed a deal with Rio Tinto and Chinalco to develop the mine. The deal is also played out in the background of rivalries between Rio Tinto and Chinalco; Chinalco is Rio Tinto's biggest shareholder, but the two firms are rivals for projects in Africa (such as the Simandou - another Guinean mining project), but both are seen as potentially leading a takeover of Ivanhoe the Canadian mining firm.