A publicity-shy group of Hong Kong investors that is emerging as a new force in African natural resources secured its latest alliance with a big commodities group on Thursday when Glencoreagreed to buy iron ore from its mine in Guinea.
The Swiss commodities trader signed an off-take agreement for 50 per cent of the output from the Forecariah iron ore prospect attributable to Bellzone, an Aim-quoted junior that is developing the mine with Hong Kong-based China International Fund. CIF will also have the option to sell its share of iron ore to Glencore.
Nik Zuks, Bellzone chief executive, said the agreement with Glencore would last for the life of the mine, covering eight years’ worth of resources. It would be accompanied by a $15m prepayment facility, Bellzone said.