Pan African expands into Australia, halts Sudan project
It has paid $54.2 million for full ownership of gold junior Tennant Consolidated Mining Group and its 50,000 gold-oz./y project.
Sunday Times reports (paywall) that BHP Billiton, which is shedding its non-core operations, is looking for a buyer for its Mount Nimba iron ore project in Guinea.
BHP Billiton did not confirm the story. Nomura Holdings has been to find a buyer.
The move will be a blow to Guinea’s president, Alpha Condé, who made attracting Western investors a top priority for his government.
The country adopted a new mining code, even enlisting the help of George Soros in drafting the regulations.
“There will be a clause in the new code which would prohibit any company from giving bribes. Any company caught giving bribes would lose its license or be penalized,” Condé told Reuters.
However, Conde’s efforts were marred by allegations that a South African middleman had negotiated backroom deal with Guinea’s mining minister, a $25 million loan backed by a 30% stake in the company’s national mining company. If the government defaulted on the loan, the 30% stake would have been worth billions.
BHP Billion is shedding a number of divisions. Last week it announced it was looking at losing its aluminum and nickel assets, and in April the company said it is reviewing its diamond business with an eye to a sell off.
Guinea has great mining assets, 1/2 the world’s reserves of bauxite and significant iron ore, gold and uranium, deposits.
Image of Alpha Condé from World Economic Forum
9 Comments
nicolas jimea
for sure BHP Biliton executives already realize that they dont have ROI for that country…few international companies trying to reposition and invest more millions to guinea….that would take decade for there returns of investment…good luck to all investor….wait until graft and corruption gone to that country….and i dont think so…
Harounat
It is unfortunate to see a mining giant pulling out from a project. In this case I believe it is good for Guinea as the country will gain much more with Junior mining companies like Bellzone than giant. These companies are more eager to do what is required and can run a more efficient operations than the huge companies like BHp Billiton. I feel sorry for them but these mining operations will continue with or without them.
Toureforall
This is not a suprise to the Guinean people . This was foreseeing .All the Guinean know the story, even the one in the Village far from the city
So lets get the hard fact please.
Thx
Cherif Barry
I am a Guinean and live in the UK for more than 16 years, I was in Conakry not long ago. I am surprise to see that all the decisions takers in these mining companies are foreigner from the UK or Australia. No serious jobs for the Guineans therefore these projects are not beneficial for our people.
We can have regulations and rules that will impose these companies to get Guineans for the jobs they can manage and training for other managerial positions for the future.
BHP has its reasons for leaving but the government deal of 25 millions can be a reasons for not respecting the clauses. That is good enough to explain their retirement.
What is happening with the iron ore in Liberia? is it for sale?
Guinea needs the infrastructures, the rails in Guinea is a good business for us and if it not for BHP then the deal can cease but guinea needs to put a clause in their next contract suggesting that if the deals end this way, guinea has the right to sell it at who they prefer not the contractor.
We have Chinese trying to get Simandou this can be an other option for them regarding iron ore in Guinea.
CIF is already with bellzone and they have shown that they can finance and have the work done as quick as possible. so I think it is better to deal with them than bringing another European or American companies with to much literature and no work.
The president needs to clarify this deal to the Guinean because we are ready to move forward and all companies are welcome in guinea if it is for serious work because the future is Africa.
Not just mining but getting your refineries and processing in Guinea. Cheap and you can quickly advance like China.
Do not hesitate to contact me if you would like to come to Guinea for business. I have serious contacts in the country.
[email protected]
Werner Heinrich
I Think it is great that they stoped the contract after finding out bribes were involved, if Australia would do that every one would get a fair go for contracts and its not who you know but what you know would filter down to jobs as well. Profit margins would improve as thier would be less hidden money, well done for standing up for basic prinsiples which are not so often found these days.
Raviksinha.Ravi
It will come as a surprise to many.Can any one tell me the reason for the pulling out of BHP Billton from Guinea?
The other answer which I am keen to know is the reason for this mining giant to shed its non-core operations.
Ravi Sinha
Satoraurum
So may be the news on Belinga Iron deposit Gabon(CMEC out/BHPB in) could be true ?
Toureforall
BHP has not really said the truth behind the scene. I believe the reason is that they had wanted to use the a neighouring counrty called Liberia to do their shipment through that area as they have got another Mining operation there which could have been less expensive and profitable for them and not for the country. i believe they couldn’t come to agreement that’s why.
Arun Chaturvedi
Resons seem other than the stated one.