Stewart R. Wallace — 1919–2009 - Society of Economic Geologists

EXPLORATION REVIEWS
36 SEG NEWSLETTER No 78 JULY 2009
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Exploration Reviews (Continued)
license to Nevsun Resources’s Bisha
project, with a state-owned company
taking a 40% stake. The $240M project
is expected to produce an average of
431,000 oz/y of gold and 702,000 oz/y
of silver in the first two years of production
beginning in 2010. More foreign
companies are exploring.
ETHIOPIA
Gold is the most important resource,
with the bulk of the production (over
120,000 oz/y) from Lega Dembi mine
in the south. In 2008, BHP Billiton
announced that it was in talks with the
government to develop a US$100M
potash project in Afar. The government
has signed an agreement with Petronas
for development of gas fields in the
Ogaden region.
GABON
Gabon produces minor artisanal gold
and diamonds but oil contributes over
50% of GDP although resources are
diminishing. An iron ore mining venture
backed by Gabon’s president is
threatening to destroy the huge Kongou
Falls by damming the Ivindo River to
power a mine and railway. With
increased output from the Moanda
mine, Gabon is now the world’s second
largest manganese dioxide producer.
KENYA
The mining sector is very minor
although there is continuing exploration
for gold in the southwest and the
GoldPlats Kilimapesa project has just
commenced gold production. Tiomin
Resources is developing the extensive
Kwale mineral sands deposits.
LIBERIA
ArcelorMittal has delayed the launch
of a planned $1.5 billion iron ore mine
as a result of 15-20% cut in demand
this year.
LIBYA
The non-oil sector is expanding, and
Rusal plans to develop a 600,000 t/y
aluminium smelter and a 1,500 MW
natural gas power station.
MADAGASCAR
Sherritt International is on the verge
of closing a financing agreement with
its partners on the $4.5 billion Ambatovy
nickel project. The orebody consists of
two large, thick, weathered ultramafic
deposits (Ambatovy and Analamay)
within a larger gabbro-syenite complex
on a block-faulted horst (the Antam -
pombato Massif). It is anticipated that
Ambatovy could produce 60,000 t/pa of
nickel beginning at the end of 2010.
MALAWI
With the development of the Kyalakera
uranium mine, the government drafted
a new Mines and Minerals Act in April
2008, and introduced a modern mining
tax regime to include generous capital
allowances and a new Resource Rent
Tax.
MOZAMBIQUE
Mining investment in Mozambique
increased between 2004 and 2008, from
$101 to $804M and the value rose from
$35.2 to $275M. Kenmare Resources’
$460M titanium mine at Moma, in the
north of the country, is employing
1,582 people during construction and
will create 450 permanent jobs. The
government has already collected
$380,000 in taxes from this project. A
mining concession has been granted to
the $800M Benga coal project in the
north-east to produce thermal coal and
hard coking coal, it is 65%-owned by
Riversdale and 35% by Tata Steel. The
company plans to initially produce 5.3
Mt of coal a year, rising to 20 Mt/pa
yearly, once the necessary transport
infrastructure is established. Noventa, a
tantalum producer, has suspended mining
operations and will not re-open
without the required $60M to fund a
crushing and processing plant at its
Marropino mine and to develop
another mine 20 km away. BHP has
stopped the Chibuto Sands project at
the feasibility stage and Mozambique is
seeking a new investor to produce titanium
slag and iron, as well as rutile
and zircon. African Queen has confirmed
exploration is underway at four
targets: Aliyele, Ashwa, Tambika, and
Tsimbi, in its Fingoe gold project in
Tete Province, an area that has produced
gold by artisanal miners. Pitting,
trenching, detailed mapping and rock
sampling followed by drilling is
planned for 2009.
NAMIBIA
Government is planning to establish a
mining charter to enable black Nami -
bians to take up stakes in mining and
exploration companies. Also, government
has formed a company, Epangelo
Mining, to explore for minerals as part
of its plans to take part in the mining
industry. The slow down in the country’s
diamond mining at Namdeb also
took a toll on the diamond-cutting
industry although the uranium industry
is still sound. Kalahari Minerals continues
to increase total resources at
Rossing South to >200 million pounds
of uranium oxide and Bannerman
Resources has raised A$30 M to ad -
vance the Etango uranium project.
RWANDA
The mineral sector of the country is currently
minimal but Gatumba Mining
Concessions has begun drilling in a
$2.5 M exploration for tin and tantalum.
SENEGAL
Australian company Mineral Deposits
is prospecting for further gold after
pouring the country’s first gold bars in
March. The firm expects to produce
160,000 oz of gold at its Sabodala mine
this year.
SIERRA LEONE
Petra Diamonds and JV partner Stellar
Diamonds have put the Kono kimberlite
fissure project on temporary careand-maintenance.
Taxes on diamond
exports helped finance the country’s
post-war reconstruction so the closure
will impact severely on the economy.
Aim-listed African Minerals has
increased the mineral resource for its
Tonkolili iron ore project to 5.1 billion
tons at an average grade of 30% iron.
SOMALIA AND SOMALILAND
Proterozoic basement is exposed in two
areas, one the small Bur complex inlier
west of Mogadishu in southern Somalia,
the other extending east-west across
Somaliland into Puntland. These areas
have significant potential for artisanal
production of gemstones and smallscale
production of coltan. There is
potential for oil in extensive Mesozoic
to Recent sedimentary rocks. Coastal
heavy mineral sands have been investigated
but no development has occurred
yet, also potential exists for large
cement production.
SOUTH AFRICA
South Africa’s economy is in recession
for the first time since 1992. The deeperthan-expected
first quarter fall of 6.4%
in gross domestic product was broadbased
but mining was down by ~33%
and is likely to fall further in 2009. The
Chamber of Mines reports that gold
production declined by 10% to 49,713.6
kg in the first quarter, compared with
the 55,242 kg produced in the fourth