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RENEWED INTEREST
IN GUINEA AND
ETHIOPIA
N
ot so long ago, Guinea and Ethiopia were probably
close to the bottom of any exploration company’s
bucket list of countries with great potential in which to
invest. This was neither the result of bad geology nor a lack of
minerals to exploit, but rather political, policy and economic
concerns. Why we should make a clear distinction between
the mineral resource potential and economic and policy
potential of a country, is explained by Claude Baissac, CEO
of consultancy fi rm Eunomix (whom I interviewed recently)
in this month’s ‘In the stope’ feature. Claude’s insight into the
inner workings of governance and policy decisions makes
for fascinating reading and is highly recommended for any
person or company intending to venture into Africa as part of
their geographic diversifi cation strategy.
There is also a piece on Guinea by Nicolaas C Steenkamp, which
again illustrates Guinea’s undeniable potential and to what
extent the mining industry has been resuscitated in this part of
Africa. Meanwhile, Ethiopia is punted by many as the hot new
mining destination in Africa, although many others, including
Baissac, warns about its inherent political risks, which never
seems to abate in this East African anomaly.
Nonetheless, Ethiopia has recently seen gold poured at the fi rst
industrial mine to be opened in the country in many decades.
Kefi Minerals’ exceptional feat in North Africa should be lauded
and bodes well for the future of mining in this region. Kefi ’s
Tulu Kapi project boasts a probable ore reserve of 1.05 million.
It is expected that the mine will generate close to USD250-
million per annum. Speaking at the Africa Down Under mining
conference held in Perth, Australia in September, the Ethiopian
www. africanmining.co.za
African Mining Publication
Minister of Mines, Dr Samuel Urkato, said that the mining
industry in Ethiopia continues to grow with major involvement
of the private sector.
“The investment policy of Ethiopia is generally established
under the principle and practices of a free market driven
economy. The government has enacted a very competitive
legal and fi scal regime that attracted many local and foreign
mining companies to involve in the mineral operations
starting from exploration to mining activities. These laws
have been amended so many times to make them more
competitive and to create a more conducive environment to
invest in the sector,” Dr Urkato said.
Political and economic reforms by Ethiopian prime minister
Dr Abiy Ahmed has resulted in huge transformation and
progressive change in the country once stifl ed by a lack of
foreign investment. Until recently, the mining sector was not
a priority. Now it is top priority. Contrary to his predecessors,
Ahmed’s reform agenda is driven by a strategy to shift the
engine of economic activity to private sector development.
Although there are still doubts about political stability in
some regions of Ethiopia, it is gradually becoming easier for
foreign companies to invest in its mining industry, and African
Mining will continue keeping you up to date with current
developments.
Leon
African Mining
African Mining November 2019
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