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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (35061)	3/6/2007 10:19:51 AM
From: LoneClone	Respond to of 78430

Continent Is Still a Priority Destination for Miners By Andrew Maggs 05 Mar 2007 at 10:38 AM GMT-05:00 resourceinvestor.com JOHANNESBURG (Business Day) -- Record attendance at last month's Africa Mining Indaba held in Cape Town confirmed that Africa is still regarded as a priority destination for both junior mining companies involved in exploration and majors such AngloGold Ashanti [NYSE:AU], Newmont [NYSE:NEM] and Barrick [NYSE:ABX; TSX:ABX]. However, there is widespread agreement that almost all of the "easier projects" in Africa have now been exhausted, leaving companies with the challenge of developing projects deeper within the continent and in more remote and difficult locations. With the exception of the Twangiza-Namoya gold belt in the Democratic Republic of Congo, which is seen as one of the last major goldfields on the continent left to be exploited, mining companies will be hard-pressed going forward to build up a pipeline of new projects. While it is not easy to select a "best prospect," given the varying operating conditions and investment regulations that different countries offer, opportunities in Congo clearly stood out at the Indaba as numerous projects, particularly in the Katanga region, were presented to delegates. The installation of the country's new government, including the appointment of a new mines and energy minister, has reinforced the opinion that the country is well on track to consolidating its newfound political stability and is intent on accelerating reforms to grow its mining sector. However, as with most countries in the region, lack of infrastructure in Congo remains a major problem. This is a concern shared by AngloGold Ashanti CEO Bobby Godsell, who sees the poor state of infrastructure in Africa as the single biggest constraint to investment. Godsell told delegates that access to power and water are the most significant operating challenges facing the company in doing business on the continent. Undoubtedly, the necessity to undertake exploration and develop projects in inaccessible and isolated areas will place added pressure on suppliers, who already face a myriad constraints when moving goods and equipment onto mine sites in Africa. The limited number of ports in Africa, and all too often their lack of adequate equipment, for example hoisting facilities, and restrictions such as narrow port exits to road infrastructure, frequently result in delays in project development. Also, it is sometimes difficult to secure specialist transport vehicles for abnormal loads. Excessive bureaucracy is regularly cited as another cause of frustration for exporters. For example, port authorities in Africa will sometimes require pre-shipment inspections at the point of departure and arrival, which adds to the burden of preparing documentation. If not completed correctly, the rejection of documentation can affect project schedules. Moreover, in terms of customs control there remains a need for far greater uniformity among countries. Despite these problems, mining projects in Africa represent a sizeable pool of opportunity for South African exporters, particularly suppliers of machinery and mining consumables. The ability to export robust equipment and provide backup - for example spares and technicians at short notice - and price more competitively than manufacturers in the U.S., Canada, Australia and Europe, must be exploited while countries such as Congo embark on the rejuvenation of the mining sector.