I THINK MINING

Another coup in another African country is hardly news.  That the coup will affect mining in that country, Guinea, is hardly news.  Another group of powerful seeking to exact their share of the resources, and it is inevitable that we will have to go through the dreary litany of review of permits, renegotiation of licences, and various and subsidiary bribes distributed by legal means.

Here is a summary of the basics of the country from the CIA Handbook:

Guinea possesses major mineral, hydropower, and agricultural resources, yet remains an underdeveloped nation. The country has almost half of the world’s bauxite reserves and is the second-largest bauxite producer. The mining sector accounts for over 70% of exports. Long-run improvements in government fiscal arrangements, literacy, and the legal framework are needed if the country is to move out of poverty. Investor confidence has been sapped by rampant corruption, a lack of electricity and other infrastructure, a lack of skilled workers, and the political uncertainty due to the failing health of President Lansana CONTE.

The president has died and a group of military officers has taken over: a new round in the African tragedy unfolds.  The interesting New Year issue is the opportunities and obligations of the mining industry and  miners in this equation. 

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