In the iron difficult and sensitive period of ore negotiations, Africa country-Senegal carries 3.5 billion tons reserves of iron ore to China for selling, perhaps China's steel enterprises will open another window fan. In the "Senegal - China Business Cooperation Day", the Senegalese president and more than a dozen senior officials carry a number of projects for seeking investment from private and state-owned companies in China, iron ore project is one of them.
Mining iron ore in Senegal must first set up factories.
According to a survey made by the East Senegal Iron Ore Company, West African countries-Senegal’s iron ore reserves up to 35 million tons, amounted 63% iron; its potential magnetite as much as 3.5 billion tons. Senegal and the world's largest steel group Arcelor Mittal Group, reached an agreement in 2007, a former’s mining be invested by the latter on a 700 million tons of iron ore reserves.
"Our iron ore at present explored by Arcelor Mittal Group to set up factories in Senegal, but I need to note that the project is not a single iron ore project, it also includes a railway and power projects integrated within the project," said by the Secretary of State also the Minister of International Cooperation and air transport and infrastructure minister of Senegal Karim • Wade. The iron ore project cost 2.93 billion U.S. dollars, including mining infrastructure, a 150 MW power plants and modern equipment, the original 2011 production, the first two years of extraction can reach 120 million tons. "China Machinery Equipment Import & Export Corporation is a 50-megawatt power station Senegal construction projects, as well as one from the company, Henan, China also participated in the construction of iron ore."
Karim • Wade introduced that the iron ore project also includes a 4.26 billion U.S. dollars investment in rail and port investment 1.62 billion U.S. dollars. Railways 311 km long, located between the mineral and the existing railway, and industrial areas and away from Diamniadio future Bargeny mine (Bargny) cross between the ports of only 6 km area. The Bargeny mining port 28 kilometers away from Dakar, Senegal, specifically design and construct for existing and future mining of large transport ship which can berth 170,000 tons of ships.
According to reports, on the afternoon of April 13, Senegal and China Communications Construction Group subsidiary of China Harbour Engineering Construction Company Limited, China Railway Group Limited and China National Machinery and Equipment Import and Export Corporation signed a Bargeny respectively, port construction, mining, Dakar to Mali's capital Bamako railway reconstruction project, and housing construction agreement, the agreement to provide the city of Dakar and the surrounding areas for a the 50 MW turbine generators, the third of project which amounts 75 million U.S. dollars.
Sino-steel Corporation Board of Directors Office of the Deputy Director of Ren Haiping said the company had yet to iron ore imports from Senegal, represented at the meeting on 13, only for knowing what the investment policy is. The Senegalese Minister of State, Minister of International Cooperation and air transport and infrastructure minister Karim • Wade, currently there is no China's iron ore mining company make direct investment in Senegal, "If Chinese companies are willing to carry out iron ore investment, but also hope to set up factories in Senegal, I hope Chinese entrepreneurs could understand the ideas of add some values of President Wade."
Welcome Chinese investment
For a long time, on the issue of region developing, Senegal actively advocated that establishing appropriate organization to coordinate the developing actions between related countries. According to reports, the last source of foreign investment in Senegal, more than 90% are from France, the proportion of investment in France has dropped to about 50%. "As China's growth, Senegal and China, increased trade, we can no longer ignore the power of China, so we are eager to win the support of China." "As long as Chinese enterprises to invest in Senegal complying with the laws and customs, they would be welcome."
The efficiency of China's impressed Karim • Wade: "In support of the African countries, China's action is most rapid, effective, such as Dakar, the transformation of transmission lines, we looked for companies in other countries, both of them require more than five years, with Chinese companies we contacted, quickly set up an assessment team two months ago we signed an agreement, and the project will end in next year."
Meaningful for negotiations on iron ore
Chinese Academy of Social Sciences Institute of World Economics and Politics Research Associate, International Investment Research, Dr. Lee Chung Min said: “Chinese enterprises invested amount in Senegal in 2005 was 2.35 million U.S. dollars; in 2006 was 4.15 million U.S. dollars; in 2007 was 4.39 million U.S. dollars; 2008 was 10.61 million U.S. dollars. "Chinese enterprises investing in Senegal grows soon and has great potential."
Lee Chung Min said, at present the problems faced by investment in Africa is very difficult in many aspects, also the infrastructure and facilities are very backward, China's investment starts from infrastructure. "According to geographical and environmental advantages of the country the first thing we should do is to establish a bridgehead, and then gradually invest in the African continent, or through the bilateral relationship between Senegal and North America, South America and Europe, marches into the above markets."
For Senegal iron ore project, the industry said that while Senegal iron ore reserves of about only Australia, Brazil, a major exporter of iron ore reserves of one-tenth, but for now at loggerheads in the iron ore talks still have a positive meaning, "at least some domestic steel enterprises to open a window."