34 SEG NEWSLETTER No 78 JULY 2009 From Concept To Reality The Legacy <strong>of</strong> <strong>Stewart</strong> R. <strong>Wallace</strong> SEG HEADQUARTERS BUILDING South Elevation North Elevation
JULY 2009 No 78 SEG NEWSLETTER 35 AFRICA Regional Vice President Africa Paul Nex (SEG 2005) Umbono Financial Services pnex@umbono.co.za and Judith Kinnaird (SEG 2002 F) School <strong>of</strong> Geosciences University <strong>of</strong> the Witwatersrand, South Africa Email: Judith.kinnaird@wits.ac.za It is difficult to cover all 53 African countries on a regular basis and in the last SEG Newsletter a number <strong>of</strong> countries not normally featured were given a brief mention. In this issue, other countries not normally included because <strong>of</strong> their small mineral sector have a brief summary. The current financial and economic crisis has adversely impacted on the economic growth <strong>of</strong> African economies, which averaged >5% pa over the past five years but is expected to decline to ~2.8% in 2009. The effects have been felt in many countries, with closures <strong>of</strong> mines resulting in huge job losses. There are some suggestions that the recession in mining may have turned the corner, and diamond sales are reportedly up. Some mines in Botswana have cautiously resumed operations and in Sierra Leone diamond operations are rehiring workers as the market improves. ANGOLA Oil accounts for ~90% <strong>of</strong> exports. Gov - ernment is seeking to develop mining and suggested it might buy diamonds to help industry through the current difficulties. Official production is 7 mcts but a plethora <strong>of</strong> illegal artisanal diggers are also active. Government is keen to contribute to the upgrading <strong>of</strong> SEAMIC (Southern and Eastern Africa Mineral Investigation Center) into an institution for Africa’s development. Angola joined SEAMIC in 1985; other members are Commoros, Ethiopia, Kenya, Mozam - bique, Tanzania, and Uganda. BOTSWANA Tawana Resources will look for JV partners to participate in its Orapa diamond project. BURKINA FASO The cotton-dependent west African economy aims to become a regional mining EXPLORATION REVIEWS Notice: Views expressed in the Exploration Reviews do not necessarily reflect those <strong>of</strong> the <strong>Society</strong> <strong>of</strong> <strong>Economic</strong> <strong>Geologists</strong>, Inc., and columnists are solely responsible for ascertaining that information in this section is correct. center and the continent’s no. 4 gold producer in the next three years. Cluff Gold expects that its Kalsaka mine will be fully commissioned by midyear. BURUNDI Burundi has considerable mineral potential, especially for lateritic-nickel deposits. Other mineral prospects include phosphate at Matongo and vanadium at Mukanda, and there is also potential for gold and tin deposits. CAMEROON Natural resources are limited, with production <strong>of</strong> petroleum products, artisanal gold, diamonds, salt, and building materials. Alucam is the largest company, smelting and exporting aluminium from bauxite imported from Guinea. The government has given the go-ahead for the development <strong>of</strong> a new US$ 160M export terminal to serve an emerging iron ore province that extends into Congo and Gabon. CENTRAL AFRICAN REPUBLIC The country produces ~500,000 ct/y <strong>of</strong> alluvial diamonds, almost entirely from ~80,000 artisanal workers but Pangea Diamond Fields operates the small Dimbi mine. CHAD The mining sector is poorly developed with some small-scale alluvial gold production and occasional artisanal diamonds, especially from Baibokoum and Guera. CONGO (REPUBLIC OF) Although petroleum production is declining, oil remains dominant, representing about 50% <strong>of</strong> GDP and 66% <strong>of</strong> government revenue. Other mineral resources <strong>of</strong> base metals, gold, iron, and phosphate have been poorly explored. The country’s main mining project is the Mag Industries integrated 580,000 t/y potash plant and 72,000 t/y magnesium smelter at Pointe Noire. CÔTE D’IVOIRE The county has important Archean and early Proterozoic occurrences <strong>of</strong> gold, diamonds, iron ore, nickel, cobalt, copper, manganese, and bauxite. Since a new mining investment code in 1995, gold has been the most popular exploration target. Cluff Gold expects to produce from its Angovia mine in 2009. DJIBOUTI Djibouti has few natural resources and little industry. DRC Mineral output and revenue has dropped. Mining contracts are under review and government has sought to apply its new mining code to all existing licenses and to redress illegal agreements inherited from the 1997–2001 civil war. Plans involve taking 15% interest in all future mining discoveries (including extensions to existing reserves) and listing state-owned companies such as Gécamines and Okomo. Reports also suggest that government is seeking to increase its stake in the massive Tenke Fungurume copper-gold project. Government might also introduce a “use it or lose it” principle for future mining contracts as part <strong>of</strong> an effort to unlock the country’s mineral resources. Katanga Mining has reported a net loss <strong>of</strong> $52 million for the first quarter <strong>of</strong> this year and investors are wary because <strong>of</strong> the uncertainty around the mining contract review. EGYPT Mineral resources include asbestos, gold, iron ore, lead, manganese, phosphates, uranium, zinc, oil, and gas although oil production has fallen. Centamin has been exploring for gold at the Sukari Hill gold project near Marsa Alam on the Red Sea coast. Production is expected in the second quarter <strong>of</strong> 2009 at an initial rate <strong>of</strong> 200,000 oz a year. EQUATORIAL GUINEA The country has experienced rapid economic growth due to the discovery <strong>of</strong> large <strong>of</strong>fshore oil reserves. ERITREA Eritrea’s incipient mining sector is based on the potential for significant potential <strong>of</strong> greenstone shear-hosted gold and volcanic-hosted massive zinc and copper sulfide deposits in late Proterozoic volcanic arc terranes, especially around Asmara and in the western district. In 2008, government to page awarded a mining 36 ... EXPLORATION REVIEWS
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