U.S., Oct. 31 -- Chinese companies will build and control power and port facilities, roads, rail and bridges on Guadalcanal, in the Solomon Islands, as part of an $825mn deal, reports Reuters.

According to new contract details the project's focus is to revive an abandoned gold mine - the Gold Ridge mine.

The gold project agreement, described by Chinese ambassador Xue Bing as an "early harvest" of the new diplomatic tie-up between Beijing and Honiara, gives Chinese interests an increased foothold in the Pacific, long under the influence of the United States and its allies.

While locals initially expressed fears the Gold Ridge mine deal would saddle the island nation with debt, those attending a weekend ceremony at the mine site were tol...