Bellzone Mining has signed an agreement with the China International Fund (CIF) to fund and develop the $2.7bn rail, port and associated infrastructure services required for the Kalia iron project in Guinea.

CIF will also fund the development of Bellzone’s $1.2bn Kalia mine, which has a 2.4 billion-ton magnetite deposit.

Under the agreement, Bellzone will retain 100% ownership of the Kalia I deposit and 50% of the Kalia II prospect, while CIF will purchase 100% of the off-take from the Kalia mines.

Bellzone has already received $40m from the CIF towards the funding of an infrastructure feasibility study, which is expected to be completed in mid-2011.