Gabon has cancelled a contract with China Machinery Engineering Corp (Comibel) to develop the Belinga iron ore mine and said it would seek a new partner for the project. The comments confirmed what Gabon had previously said in a bond issue prospectus, which stated the government would choose a different partner for Belinga after settling a dispute with Comibel.

"We have decided to end the contract with Comibel and seek other partners," presidential spokesman Alain-Claude Bilie By-Nze told Reuters on Saturday. He said the government had paid the Chinese company's expenses for initial work on the project, but gave no further details. "Obviously, the government is not closing the door to the Chinese," he added.

The delay to Belinga is another setback to Gabon after global mining group BHP Billiton said earlier this year it was freezing all its projects in the central African country. Belinga could provide a significant economic boost for Gabon as the government seeks to expand exports and diversify away from oil, but the project has faced a series of delays and setbacks. Government officials hope to choose a new partner for the mine by 2015.

Copyright Reuters, 2013