Chinese group invests in Sierra Leone rubber

According to Association of Natural Rubber Producing Countries estimates, in 2012 China will produce some 750,000 tonnes of natural rubber, an increase of around six per cent on last year. Yet during the same period the country is expected to consume 3,610,000 tonnes of the commodity. To help meet this huge demand for imported natural rubber, China’s Hainan Natural Rubber Industry Group has signed an agreement with Sierra Leone, a deal expected to be the largest agricultural investment in the West African country’s history.

Reuters states the deal is worth US$1.2 billion and involves both rubber plantations and rice crops. A total of 135,000 hectares will ultimately be involved in the project, which will be developed over a six year period. The first phase of investment is due to begin next month with a 30,000 hectare rubber plantation and a 25,000 hectare rice project. The Sierra Leone government will provide the land for an initial period of 50 years, subject to renewal, and in exchange hold a ten per cent share in the project.