American Company Complains: Planning to Invest 1.8 Billion to Build a "Freedom Corridor" to Counter China, But Faced Accusations of Being "Pro-China" from Congress

【By Chen Sijia, Observers Daily】Last month, the Simandou iron ore project in Guinea, which has been deeply involved by Chinese enterprises, officially started production. It is the world's largest green iron ore project, with a maximum annual capacity of 120 million tons after completion, and it is expected to reshape the global iron ore industry. In an attempt to "counter China's influence," the United States also tried to invest in African mineral projects, but these projects have not progressed smoothly.

According to a report by the Financial Times on December 17, the American mining company Ivanhoe Atlantic is seeking cooperation with the Guinean government to develop the Kon Kweni iron ore mine, about 160 kilometers away from Simandou. However, the project has encountered obstacles both in Africa and the United States. African countries are cautious about investments, while U.S. Republican lawmakers have accused Ivanhoe Atlantic of being "pro-China."

The Kon Kweni iron ore mine is located in the Nimbah Mountains in southeastern Guinea and is owned by Ivanhoe Atlantic. The company positions it as a "replacement for the Simandou iron ore project," planning to invest 1.8 billion U.S. dollars to develop this iron ore mine, supplying iron ore with a grade of 66.5% to Western countries, to help Western countries deal with the so-called "increasing control of China over critical minerals."

Ivanhoe Atlantic's CEO, Brownwin Barnes, named the project "Freedom Corridor" and considered transporting iron ore through the neighboring country of Liberia to avoid the 600-kilometer railway built by Chinese companies for the Simandou iron ore project, ensuring that all iron ore produced from the Kon Kweni mine goes to the supply chain of the United States and its allies, and does not flow to China.

Ivanhoe Atlantic hopes to start transporting iron ore by mid-2027. This month, the Liberian House of Representatives has approved an agreement allowing the company to share a railway dedicated to the Luxembourg steelmaker ArcelorMittal.

The Simandou iron ore project (blue line) and the "Freedom Corridor" planned by the American company (red line)

However, this "America First" mineral project has faced obstacles in both Africa and the United States. In Guinea, many officials are hesitant about the agreements made by the previous administration. A senior official told the Financial Times that although the previous government signed an agreement in 2019 allowing Ivanhoe Atlantic to export iron ore via the Liberian railway, the current government's stance has changed.

The official said, "Before the infrastructure of the Simandou iron ore project was completed, this was an option. But now, this is no longer important."

Liberian officials are concerned about the issue of railway usage rights, fearing that allowing Ivanhoe Atlantic to use a dedicated railway may offend their largest investor, ArcelorMittal. However, Paul Weir, the communications director of ArcelorMittal, stated that the railway can be used by other companies, provided they "directly invest to develop additional capacity."

Ivanhoe Atlantic once boasted that the Kon Kweni iron ore project had the support of President Trump, but Liberian officials questioned this. A senior official said that when President Boakai met with Trump in July, Trump seemed unfamiliar with the "Freedom Corridor" project, "They made the project look like something Trump wanted, but when the Liberian president arrived in the U.S., he realized the Trump administration was actually not really involved."

In the United States, Ivanhoe Atlantic's project has encountered unexpected resistance. Although Barnes repeatedly claimed to "fight against China's influence in Africa," Republican lawmakers have accused his company of being "pro-China."

The chairman of the U.S. House of Representatives' China Committee, John Moolenaar, recently wrote to Secretary of State Rubio, claiming that Ivanhoe Atlantic is "actually a pro-China company." He asserted that Ivanhoe Atlantic's "sister company," Ivanhoe Mines, has close ties with Chinese enterprises and has received investments from multiple Chinese companies.

In response, Ivanhoe Atlantic stated in a statement that Moolenaar's allegations were "highly erroneous and misleading," as he confused two different companies, which are actually "independent entities with different assets, management teams, and shareholders."

The Financial Times noted that both Ivanhoe Atlantic and Ivanhoe Mines were founded by mining magnate Robert Friedland. Ivanhoe Atlantic is an American company, with I-Pulse as its major shareholder, a private company chaired by Friedland. Ivanhoe Mines is a Canadian company, holding about 3.65% of I-Pulse shares, making it an indirect shareholder of Ivanhoe Atlantic.

Barnes said that Ivanhoe Atlantic will "stay away from politics," and the company has received preliminary approval for listing on the Australian Stock Exchange. Once the railway agreement is approved by Liberia, the listing process can continue. She added that the accusations by Republican lawmakers were "unexpected," and "two years ago, this was not an issue."

Peter Van, chairman of Ivanhoe Atlantic's board, told the Financial Times that Trump supported the general direction of the Kon Kweni iron ore project, but might not be familiar with all the details. The U.S. State Department declined to comment, and a senior U.S. government official said, "Ivanhoe Atlantic is a U.S.-based company. The government prioritizes ensuring the security of critical mineral supply chains, which is supported by U.S. companies."

The Financial Times pointed out that although the United States has increased funding for infrastructure related to African mining in recent years, such as the Lobito Corridor connecting copper mines in Zambia and the Democratic Republic of Congo to Angola's ports, the U.S. investment strategy is not as consistent as China's.

Peter Martin-Jones, a mining analyst at British investment bank Pierpoint, said that given China's continuous investment in African minerals and infrastructure over the past 15 years, the United States is already at a disadvantage in Africa. He pointed out that the U.S. mining policy changes with each administration, and during the Trump era, it felt like "a feudal court of the king, where the left hand beats the right hand."

Iron ore from the Simandou mine, Reuters

On November 11 local time, after a 28-year-long struggle, the Simandou iron ore project officially started production. It is the world's largest green iron ore project and one of the largest mining investment projects in Africa's history, with a total investment of 23 billion U.S. dollars. The Simandou iron ore mine has proven iron ore reserves of 4.4 billion tons, with an average iron grade of more than 65%, and after completion, it can reach a maximum annual capacity of 120 million tons, which is expected to reshape the global iron ore industry.

China is the world's largest importer of iron ore. Given that Chinese enterprises have deeply participated in the construction of the Simandou iron ore project and provided substantial investment, it is generally expected that most of the iron ore mined from the Simandou project will be transported to China.