Algeria Targets Full Mining Strategy, China Slated to Take Top Prize
By Sven Ridley-Wordich
07 Jun 2008 at 08:04 AM GMT-04:00
resourceinvestor.com
AMSTERDAM (ResourceInvestor.com) -- Although Algeria consistently makes the headlines over its upstream oil and gas projects, leading an effort to increase its crude oil and gas production, the country has also become very active in its mining sector. The Algerian government is currently assessing exploration proposals for 20 mining sites.
The Algerian mining authority, Agence Nationale du Patrimoine Minier (ANPM), has received technical proposals from more than 15 international and local mining companies. These companies have expressed interest for 20 mining sites in nine provinces, which have been put up for tender by the government.
Among them are Chinese firms Cecomines and Geo Engineering, Turkish company Koyunoglu, Australian companies Richmond Hill Resources and Terramin [ASX:TZN] and Canadian operator Cancor Mines [TSX:KCR]. Algerian companies Enof, Soalka and Cevital have submitted proposals, while London-based Pan African Resources [AIM:PAF] is also in the race.
The main focus of the parties involved is the licenses regarding Ain Bougda and Kef Oum Tboul. Both licenses are targeting the exploration of potentially vast copper, lead and zinc reserves. ANPM indicated that both licenses have received six bids.
At present, Djebl Aberraz, Djebel Ichmoul, Tin Amzi, Bled El Mass and Rahmani have each received only one bid. The main attraction of these licenses is the potential for diamond, salt, iron, gold, fluorite or beryl deposits. Each license has been tendered on the presumption that mining operators will be focusing on one specific mineral.
The whole procedure could go fast, after ANPM has completed a technical evaluation of each concession. It is expected that awards will be awarded within a period of three months after invitation of commercial bids.
The Algerian mining tender round has attracted the full attention of the Chinese. Beijing has not only shown to have an appetite for energy related sources, but has increasingly become active in the mining sector on a global scale. Beijing is fully supporting international activities of its local companies, which are targeting energy, mineral and metal production in Africa, Latin America and Central Asia.
The current bidding round could be the second time Chinese companies are successful. In 2007, the winner of the first mining round was China. Only Canada's Cancor was successful in taking some land.
The combination of Beijing's political and financial support, which is backed by the Chinese Ministry of Defense, has been giving most Chinese companies enough leverage to crush competition. Algeria and China have been showing a growing cooperation in most economic sectors, and mining could fit perfectly in this relationship. |
