Guinea expects in the coming weeks to announce another significant iron ore deal to follow Vale's $2.5bn acquisition in the west African country, with Chinese investors considered the frontrunners.

Mahmoud Thiam, mining minister, told the Financial Times that he hoped a new joint venture involving Bellzone, an Aim-listed junior miner that says it has a “non-binding memorandum of understanding . . . with a Chinese enterprise” to exploit its prized Guinean concession, will be announced within a month.

Iron ore has become the hottest of commodities amid voracious Chinese demand and following radical changes in March to the way big miners sell to steelmakers that allowed prices to soar. West Africa – home to some of the largest untapped stocks but also renowned for its volatility – is attracting feverish attention.