EXCLUSIVE-Guinea-Chinese deal rests on $100 mln deposit

* CIF has deposited $100 million in Guinean central bank * Funds unusable, meant to guarantee mining deal By Saliou Samb and Richard Valdmanis CONAKRY, Dec 15 (Reuters) - A Chinese fund has paid Guinea's ruling junta a $100 million deposit to guarantee a mining deal but the vast future proceeds seen flowing from the accord remain uncertain, Guinean sources have told Reuters. The deal, signed before the political crisis sparked by a botched Dec. 3 assassination bid on junta leader Moussa Dadis Camara, was initially valued at $7-9 billion and seen as a lifeline to a government facing international isolation. But the wording of the accord stipulates that even the initial deposit cannot be touched by the junta, according to the sources, while any future revenues depend on whether the West African state can return to some sense of stability. "They have made a deposit of $100 million into the central bank, but we cannot touch it," said a Guinean central bank source who requested anonymity. "They (the Chinese) know there is a risk that if there is a change in power, their agreement will be cancelled," a separate government source said of questions hanging over the country's future leadership while Camara recovers in a Moroccan clinic. Defence Minister and Camara loyalist Sekouba Konate has taken temporary control of the country, the world's top exporter of the aluminium ore bauxite and home to operations of major firms like Rio Tinto ( RTP - news - people ) , Alcoa ( AA - news - people ) , and RUSAL. The country is also believed to have untapped reserves of iron, gold, diamonds, and offshore oil and natural gas. While there has been no move to impose a broad trade embargo in Guinea, it faces a ban on arms imports and junta members have been targeted with visa bans and other sanctions since a Sept. 28 crackdown on pro-democracy marchers that killed over 150. ACCESS TO MINERALS AND ENERGY China has boosted its resource investments around the world in recent years, particularly in Africa where it is seeking to lock up energy and minerals concessions to feed its rapid economic growth at home. According to a source with knowledge of the accord, Camara allies clinched in June an accord with the Hong Kong-based China International Fund (CIF) to form a joint venture called Guinea Development Corporation (GDC). Guinea would hold direct and indirect stakes amounting to 32 percent in GDC, with the rest held by CIF and majority-owned Angolan joint venture China Sonangol International, he said. A copy of the accord seen by Reuters showed it was signed on June 12 by Energy Minister Mahmoud Thiam and two other Guinean officials. Under its terms, GDC would have access to all the country's minerals and energy resources not currently being exploited by other companies. Some of the revenues realised by Guinea would be used to fund electricity, water and transport projects -- including a national airline, two government sources said. It was not clear what conditions were attached to the release of the $100 million guarantee. Thiam declined comment when reached by phone on Saturday and Monday, and has not responded to repeated calls since then. Beijing has distanced itself from CIF's mining deal, but a U.S. Congressional report earlier this year said some of its members work for the Chinese government. When contacted by telephone, the Chinese embassy in Conakry was not immediately available to comment on the deal. With Camara still out of the country, it is not clear how future provisions of the deal will be implemented. A separate central bank source said that an additional $200 million was now expected from CIF, but he could not give details on the timing of the payment or conditions for use.