Hyperdynamics Corp (HDYNQ)

[Rule_62]

Remember when Guinea was talking to the Chinese behind Hyperdynamic's back? Well, China hasn't gone away. Currently they're bestowing large cash rewards to Guinea in exchange for bauxite mining rights.

Here's an article from Aujourd'hui en Guinee (translated into English thanks to Google Translate).


Guinea: President Conde describes as exceptional mining agreement signed with China (Xinhua)

2017/9/18

Today in GuineaCONAKRY, (Xinhua) - "This is the first time that Guinea has signed a unique agreement with China for the construction of road, rail and port infrastructure in the interest of our people", said Saturday the Guinean President Alpha Conde, at a press conference to inform the benefits of a mining agreement recently signed between Guinea and China.

This is an agreement nature of win-win "mines against the financing of infrastructure projects," M. Condé said.

Under the terms of the agreement in the amount of 20 billion dollars over 20 years, every year, a budget of one billion dollars will be available for projects

President Condé said the mining agreements signed between Guinea and other countries represented significant resources to the coffers of the Guinean State. However, he added, a long time, these funds have not been used in a transparent and have always been the diversion of object by Guinean executives.

The framework agreement with China will get revenue to be used solely to build infrastructure (roads, railways, universities, agricultural and port infrastructure), stressed the head of the Guinean State.

He also noted with satisfaction that China's investment in the mining sector would help Guinea achieve double-digit growth in 20 years, with about 1 billion dollars of investment each year. Indeed, the country needs 1.5 billion dollars of annual investment to achieve this goal.

The fund also will leverage to support the development of the educational sector and the modernization of agriculture in the country, the president added.

Citing financial partners such as the International Monetary Fund (IMF), the head of the Guinean State has sought reassurance, indicating that the IMF had been informed of all stages of the negotiation between Guinea and China, given the volume of investment announced.

For the first phase of the agreements, China will realize a route of more than 337 km from Coyah in Dabola (geographical center of Guinea), through the Mamou region, for a total cost of 400 million.

Then the port of Conakry, Guinea's capital, will be carried out with a plan of expansion and modernization for a total cost of 700 million.

In Conakry, the project realization and modernization of urban roads covers about 200 km of roads to be built for 220 million.

According to the Minister of Mines and Geology, Abdoulaye Magassouba, it is a "historic and unprecedented agreement for Guinea and for Africa".

Ms. Malado Kaba, Minister of Economy and Finance has meanwhile estimated that this agreement is doubly beneficial for Guinea.

According to the minister, the funds will allow Guinea to achieve double-digit growth target and also have an attractive local content for populations in mining by China.

Several mining companies - American, Russian, French, British, Indian and UAE - already operating in the Guinean mining sector.

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If there actually still is any interest by the Chinese, now that the lease is about to expire, Hyperdynamics wouldn't have a snowball's chance in hell of competing. I personally don't think it's very likely, but with all the "what if's" being thrown out there, it's just one more on the list.