L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

L. Fituni, I. Abramova Resource Potential of Africa and Russia's ... L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

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licenses. They are the only Russian company who are working offshore at such depths. LUKoil also works in the Caspian Sea. Although Russian continental shelves are not as deep as the West African one, LUKoil is gathering very useful experience for future drilling operations. 56 The Soviet Union’s assistance to the Republic of Benin in investigating its natural resources included laboratory research of samples of non-ferrous and rare metals-copper, lead, zinc, molybdenum, cobalt, nickel, chromium, tungsten, niobium, lithium, etc. Soviet specialists undertook geological prospecting and surveying work for solid minerals in that country. They were helping to compile the first geological map of Benin, which made it possible to study further the republic’s natural resources. Considerable aid in prospecting for minerals has been given to the Republic of Mali. During the colonial period no geological investigations had been conducted there. After the signing of an agreement in 1961, an important aspect of Soviet-Malian cooperation was Soviet assistance in geological surveying and studying mineral resources in Mali. The first stage of the investigations consisted in aero-magnetic surveys over an area comprising about three-quarters of Mali's territory. Geological prospecting for cement, combustible shales, iron ore, gold, etc., has been carried out. As a result, in the Bafoulabe- Kai regions in the southwest of Mali deposits of high quality limestone have been discovered, estimated at 18.5 million tons, as well as clays and silica, necessary as additions in the production of cement. On the basis of these deposits Mali's first cement factory was built in 1969. Prospecting for combustible shales in the Agamor- Bourem-Islufen regions in the north-east of the country made it possible to reveal their resources comprising, according to preliminary estimates, up to 800 million tons. An important stage in preparing conditions for the development of a mineral and raw-material base in Mali has been the organization in 1969 of the National Society for Prospecting and Exploitation of Mineral Resources (SONARM) whose production and technical foundation was created with Soviet help. 115

The discovery of gold deposits in the Kalana region made it possible to organize its industrial development and continue geological prospecting for gold in the region. The Kalana concession covers an area of some 387.4 sq. km. in South West Mali and includes in the Northern parts of the concession the Kalana Mine covering a surface area of 2 sq. km. The concession permit was transferred to AGL on 30 December 2003 and confers the right to exploit and explore for precious and base minerals for a period of 30 years and renewable thereafter so as to be co-terminous with the life of any mine on the concession area, which is unusually favourable in Mali. It is believed that the permit in respect of the concession area is one of two on these terms. The concession and in particular the Kalana mine was thoroughly explored in the period 1962-1982 by two Malian National companies, SONAREM and SOGEMORK, as part of a Soviet Technical Assistance Program to Mali. A production decision was taken in 1982 to develop the Kalana mine as a small underground mine using a process flow sheet based on crushing, milling and gravity concentration. Production commenced in 1985 and over the following six years until 1991 a total of 270,000 t were treated at an average head grade of 12.9 g.t to product 2,534 kg of gold. With the break up of the former Soviet Union in 1991 Soviet personnel as well as technical and financial resources were withdrawn and the Kalana mine was placed on care and maintenance. The Kalana concession was held by AGL under permit no. 03147/PM/RM dated April 7, 2003 (“the permit”). In accordance with the Foundation Agreement concluded with the Government of Mali the permit was transferred to a Malian company, SOMIKA SA, a 80% subsidiary of AGL. The permit was originally granted to SOGEMORK in 1984 and after the dissolution of SOGEMORK in February 1992 following the Soviet withdrawal the permit reverted to the State. In 1994 the Malian Government embarked on a privatisation program with the assistance of the World Bank. As part of that program the Malian Government launched an international call for tenders for the Kalana concession. The invitation to tender stipulated 116

The discovery <strong>of</strong> gold deposits in the Kalana region made it possible<br />

to organize its industrial development <strong>and</strong> continue geological<br />

prospecting for gold in the region. The Kalana concession covers an<br />

area <strong>of</strong> some 387.4 sq. km. in South West Mali <strong>and</strong> includes in the<br />

Northern parts <strong>of</strong> the concession the Kalana Mine covering a surface<br />

area <strong>of</strong> 2 sq. km. The concession permit was transferred to AGL on<br />

30 December 2003 <strong>and</strong> confers the right to exploit <strong>and</strong> explore for<br />

precious <strong>and</strong> base minerals for a period <strong>of</strong> 30 years <strong>and</strong> renewable<br />

thereafter so as to be co-terminous with the life <strong>of</strong> any mine on the<br />

concession area, which is unusually favourable in Mali. It is believed<br />

that the permit in respect <strong>of</strong> the concession area is one <strong>of</strong> two<br />

on these terms.<br />

The concession <strong>and</strong> in particular the Kalana mine was thoroughly<br />

explored in the period 1962-1982 by two Malian National<br />

companies, SONAREM <strong>and</strong> SOGEMORK, as part <strong>of</strong> a Soviet<br />

Technical Assistance Program to Mali. A production decision was<br />

taken in 1982 to develop the Kalana mine as a small underground<br />

mine using a process flow sheet based on crushing, milling <strong>and</strong><br />

gravity concentration. Production commenced in 1985 <strong>and</strong> over the<br />

following six years until 1991 a total <strong>of</strong> 270,000 t were treated at an<br />

average head grade <strong>of</strong> 12.9 g.t to product 2,534 kg <strong>of</strong> gold. With the<br />

break up <strong>of</strong> the former Soviet Union in 1991 Soviet personnel as<br />

well as technical <strong>and</strong> financial resources were withdrawn <strong>and</strong> the<br />

Kalana mine was placed on care <strong>and</strong> maintenance. The Kalana concession<br />

was held by AGL under permit no. 03147/PM/RM dated<br />

April 7, 2003 (“the permit”). In accordance with the Foundation<br />

Agreement concluded with the Government <strong>of</strong> Mali the permit was<br />

transferred to a Malian company, SOMIKA SA, a 80% subsidiary <strong>of</strong><br />

AGL.<br />

The permit was originally granted to SOGEMORK in 1984 <strong>and</strong><br />

after the dissolution <strong>of</strong> SOGEMORK in February 1992 following<br />

the Soviet withdrawal the permit reverted to the State.<br />

In 1994 the Malian Government embarked on a privatisation<br />

program with the assistance <strong>of</strong> the World Bank. As part <strong>of</strong> that program<br />

the Malian Government launched an international call for tenders<br />

for the Kalana concession. The invitation to tender stipulated<br />

116

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