China considers support for Guinea rail project

China is considering providing more than US$10 billion in funding for railway and port construction in Guinea that would support Rio Tinto’s (RIO.NYSE, RIO.LON, RIO.ASX) giant Simandou iron ore project, South China Morning Post reported, citing four unnamed sources. The agency overseeing companies owned by the Chinese government had gauged interest from state rail and port builders and contacted China Development Bank about providing financing. Guinea’s inability to fund the rail line from its coast to Simandou, described by Rio as the world’s largest untapped deposit of iron ore, has effectively frozen the project.