L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

term economic development. The nation possesses the world's richest
bauxite deposits. However, more than three-quarters of all bauxites
have been obtained on the basis of the Guinean government's
joint participation with foreign capital.
In the first years after gaining independence geological work has
been conducted in Guinea by foreigners alone. During the period of
Soviet-Guinean cooperation a Polytechnics Institute has been
opened in the country and Guinean specialists have gained a wealth
of experience in geological work. In 1971, the Guinean National
Geological Organization decided to ensure the necessary conditions
for organizing work to explore the country’s mineral resources. Soviet
organizations were assisting Guineans in this field; inter alia,
by setting up the Central Geological Laboratory.
The country's first national mining enterprise was the Kindia
mine with a capacity of 2.5 million tons of bauxites a year, built
with Soviet assistance on a compensatory basis. All units of the
complex (mine itself, railway stretching for 100 kilometers, loading
and unloading installations in the port of Conakry, workers' communities,
etc.) have been financed through Soviet credits.
A considerable part of bauxites mined there was purchased by
the USSR as a form of repaying the credits granted to Guinea, and
also under a trade agreement. As a result, Guinea's capacity to repay
its debt and to buy commodities in the East were broadened considerably.
This cooperation was to mutual advantage. The Soviet Union
now had stable source for importing bauxites used in the production
of aluminum and abrasives.
The financial scheme was developed by the Soviet GKES specialists
and customized to meet the requirements of the Guinean
side. Curiously enough, as many other ex-Soviet know-hows, this
very scheme is currently used by China in its business dealings with
African economic partners. Western analysts call it now “Angola
model” and many believe it to be an innovative Chinese invention 53 .
They call it “Angola model” because PRC used the scheme in order
to finance the delivery of oil from that country. Since 2004 Angola
received US$5 billion worth of Chinese loans for delivery of oil to
China. The model was also used in a US$9 billion contract with the
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