Guinea Working on Funding for Key Infrastructure Plan - Minister

By Devon Maylie

CAPE TOWN--Guinea's ministry of mining resources is identifying funding to develop an infrastructure project that will determine how quickly big iron ore projects develop, the mining minister said Wednesday.

The country's iron ore mines need about $16 billion worth of rail and port development for them to be able to begin exporting, Mohamed Fofana said on the sidelines of the Indaba mining conference.

Major companies in Guinea include Vale SA (VALE), which has partnered with privately owned BSG Resources Ltd. to develop the Simandou iron ore project. Vale said it is waiting for clarity on key logistical parameters before going ahead with its investment.

Rio Tinto PLC (RIO) and Aluminum Corp. of China Ltd. (ACH) jointly are also developing their own iron ore project in the country.

Mr. Fofana said the country has two main options--raising money in the financial markets or finding a company to build and operate the plant through which mining companies can go. He said the ministry is in discussions over the latter option, but declined to say who possible companies would be.

Write to Devon Maylie at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires