According to recent report, China National Machinery and Equipment Import and Export Corporation (CMEC) announced that it has inked a deal with Gabonese government for mineral rights of Belinga iron ore reserves.

CMEC will set up a joint venture to exploit Belinga mine and develop other constructions, including railways, ports and hydropower plants etc for 25 year.

The Belinga mine project is expected to output about 30 million tons of iron ore annually, and estimated to cost more than costs more than US$790 million. This new investment will be China’s biggest resource investment in Africa up to now.

China’s iron ore imports are expected to reach 625 million tons or more by 2012. Such investment can help China to secure oversea resources and prevent influence of future price hike.