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Guinea seeks to double share in mining projects !

Discussion in 'International Forum' started by Nyambala, Jan 25, 2011.

  1. Nyambala

    Nyambala JF-Expert Member

    Jan 25, 2011
    Joined: Oct 10, 2007
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    Guinea seeks to double share in mining projects

    By: Reuters
    24th January 2011

    CONAKRY – Guinea plans to boost its stake in mining projects to at least a third, its newly elected president said, a move that could rattle some of the world's biggest mining companies.

    Rio Tinto and RUSAL have multi-billion dollar bauxite operations in the West African state, while Vale, Chinalco and others have planned major investments in iron-ore.

    "There will be three to five difficult months, since we've decided not to renegotiate contracts but instead to define a new mining policy that will give Guinea at least a third," President Alpha Conde told reporters on Sunday in Burkina Faso.

    He said Guinea would begin talks with international firms, but did not say when.

    Guinea's current mining policy gives the state a minimum 15% stake in mining projects, meaning current mining contracts would need to be amended, a senior Mines Ministry official told Reuters on condition of anonymity.

    "It is impossible to increase this participation without a renegotiation [of the contracts]," he said.

    Guinea is the world's largest exporter of the aluminium ore bauxite and its iron ore deposits have drawn billions of dollars in planned investments.

    Conde was elected in a hotly-contested poll in November that ended nearly two years of military rule and was billed as the former French colony's first free election since independence in 1958.

    Conde had promised during his campaign to review all of the country's mining contracts, including several joint-venture deals that were signed during the junta rule.

    Officials from Rio Tinto and Vale were not immediately available to comment.

    My Take:

    Hawa wenzetu wanawezaje? Na haka kanchi kamekuwa kwenye migogoro takribani miaka miwili sasa. Sisi Kwenye kisiwa cha amani ni porojo tu, mara tume (meno hamna).

  2. Nyambala

    Nyambala JF-Expert Member

    Jan 25, 2011
    Joined: Oct 10, 2007
    Messages: 4,468
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    Have a look on this one!!!!!!!!!

    $10bn Simandou Africa's ‘largest ever integrated project' – Rio Tinto

    JOHANNESBURG (miningweekly.com) – Rio Tinto's Simandou iron-ore project under construction in Guinea will be "the largest integrated mine-and-infrastructure project ever developed in Africa".

    The overall project cost including infrastructure development is expected to top the $10-billion mark.

    Simandou alone will make West Africa one of the world's foremost iron-ore exporters, comparable with established producers like Brazil and Australia.

    Production, at a planned 95-million ton a year, is expected to begin within five years. Of the 1 600 people currently working on the project, 90% are Guinean.

    There will be 13 000 jobs at the peak of construction and an eventual 4 000 core mining jobs. The project is being built in partnership with the Chinese state-owned company Chinalco, the World Bank's International Finance Corporation (IFC) and Rio Tinto, headed by CEO Tom Albanese.

    "This represents a significant vote of confidence on the potential of Africa and one we believe will encourage other investors and catalyse economic activity more broadly," Rio Tinto says in an emailed response to Mining Weekly Online.

    The iron-ore deposits at Simandou are seen as being potentially transformative for Guinea, provided the project partners and the government develop them in the "right way".

    The "right way" is seen to involve a commitment to a stable and predictable investment climate; a safe and healthy operating culture; the protection of the surrounding bio-diversity; and the effective management of issues such as in-bound migration and local inflation.
    "We are ramping up our on-ground infrastructure development around the mine in 2011, and have just appointed a major construction contractor – Fluor – to help achieve this," Rio Tinto tells Mining Weekly Online.

    Early preparation under way includes the refurbishment of national roads between Beyla and Nzerekore, the establishment of vocational training centres in Conakry and Beyla, the development of service and construction wharfs near Forecariah, and the building of small power generation facilities near the Macenta and Beyla communities.

    The 20% interest that the Guinean government is expected to take up will proportionally reduce the effective interests of Rio Tinto, Chinalco and the IFC.

    "We are keen to get this massive and complex project into operation as soon as practicable," says Rio Tinto, which has, to date, invested some $700-million in Simandou, including $45-million in regional development.

    Sisi tumewapa wachina hiyo Liganga na Mchuchuma hata Details haziwekwi wazi!