DiamondWorks workers still missing year after mine raid
Bloody Angola attack
By KEITH DAMSELL
The Financial Post
The whereabouts of eight employees of DiamondWorks Ltd.
remains a mystery today, one year after a deadly attack on the
company's Angola mine.
In the early hours of Nov. 8, 1998, 50 men attacked the
Yetwene mine, a $360-million (US) diamond property owned
by the Vancouver-based company. Eight workers were killed,
16 wounded.
Another eight employees were abducted, their captors
believed to be the rebel group Unita.
"We're still hopeful they're alive," said Bruce Walsham,
president, chief executive and chairman of DiamondWorks.
The anniversary is a grim reminder of the hazards of doing
business in Africa, host to some of the world's richest mineral
bodies and most-corrupt and ruthless regimes.
"The trouble spots will always offer risks and rewards and
that's part of the equation," said Dorothy Atkinson, an analyst
at Vancouver's IPO Capital Ltd.
In the mid-1990s, when spectacular mineral discoveries in
Newfoundland, Peru and Indonesia pumped millions into the
junior exploration market. Dozens of companies chose Africa,
much of which has not been fully explored for mineral
resources.
The failures outweigh the successes. In the Democratic
Republic of Congo, military and political turmoil have spelled
problems for several companies. Banro Resource Corp. of
Toronto lost a key exploration agreement last year. In
February, Vancouver's Tenke Mining Corp. abandoned a
$475-million (US) copper-cobalt project proposed for the
central African nation. Namibian Minerals Corp. of
Vancouver has shelved Angola and Congo diamond
exploration. And despite an armed security team, a
counter-coup last year in Sierra-Leone forced
DiamondWorks to abandon operations.
"You have to be very selective when looking at countries and
their risks," said Ed Flood, analyst at Vancouver's Haywood
Securities Inc. He advises investors to "follow the big
companies" when considering an investment in Africa. For
example, Tanzania's progressive mining legislation and thriving
democracy prompted Barrick Gold Corp. of Toronto to
commit $280-million (US) to develop its Bulyanhulu gold
mine. Peaceful Ghana, Namibia and South Africa have also
attracted their fair share of mineral exploration and investment.
Nevertheless, the riches of troubled nations like Angola are
hard to ignore. DiamondWorks resumed Yetwene production
in April this year and is "very close" to earning a profit, said
Mr. Walsham.
Despite a May 1998 ambush by bandits that took the life of
a senior mining officer, SouthernEra Resources Ltd. remains
committed to diamond mining in the country. The Toronto
company's Camafuca project is running smoothly, said
Christopher Jennings, president. The political climate
continues to improve and "the hopes of peace are closer than
they were six or nine months ago," he said.
canoe.ca
Year ago story in referring post ... how are you, Pahww? ... still in this one? .. cheers |
