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Commodities

China bankrolls Africa railroad to cut Australia iron-ore reliance

Costly infrastructure in Guinea will unlock world's largest untapped source

Iron ore imported from Australia, Brazil and other countries is unloaded at a port in Taicang, in China's Jiangsu province. (Costfoto/Future Publishing via Getty Images)

TOKYO -- While China-Australia relations seem to be thawing, Beijing is slowly but surely moving to cut its dependence on Australian iron ore.

Last Friday, mining giant Rio Tinto and a consortium of Chinese state-owned enterprises announced that they had concluded key agreements with the government of Guinea to build a trans-Guinean railway capable of carrying iron ore from the west African nation's inland to the coast.

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