gateway to africa

Hi All,

Found this article discussing Australian firms exploring African resources, quotes from Mike Ralston in the article.
See article http://economie.jeuneafrique.com/regions/afrique-subsaharienne/15206-groupes-miniers--la-bourse-de-sydney-passage-oblige.html
Need to translate it from French, alternatively look below.


Mining groups: the Sydney Stock Exchange, the gateway
The popularity of the Australian mining for Africa can not be denied. But with the escalation of projects, fundraising on the Australian Securities Exchange (ASX) becomes more difficult.

A little over five years as Australia capitalize on African deposits. Encouraged by the consolidation of the political and economic framework across the entire continent, Australian mining companies do not hesitate, whatever their size or financial strength, come try their luck in Africa. "The mining sector is already well known and largely under control in Australia. Opportunities they are rare, "says Peter Rudd, an analyst at Citigroup in Sydney.

Mine operators have therefore multiplied investments abroad, particularly in Africa, "where operating costs are much more advantageous in Australia for delays in obtaining permits generally shorter," says Roger Donnelly, chief economist at the Export Finance and Insurance Corporation (EFIC), the Australian agency specializing in credit insurance for export.

A strong internationally recognized expertise in a sector which contributes 5% of GDP and 35% of the country's exports, Australian companies can count on support from local investors for the onslaught of mineral resources Africa. Of the 745 mining operators listed with the Australian Securities Exchange (ASX) - 44% of all companies listed on the Sydney Stock Exchange and 23% of its total capitalization - 204 now working in Africa on a thousand projects in 38 countries. Only slightly better Canada (207 companies listed), while London Square reached painfully hundred operators.

Constituted three-quarters of juniors, the Australian contingent is positioned primarily on exploration projects, gold in West Africa (Mali, Burkina Faso and Ghana), but also uranium in Mauritania and Namibia, nickel Tanzania, diamonds in Angola and Botswana, Madagascar and coal in South Africa, iron ore in Cameroon and Sierra Leone or copper in DR Congo and Zambia.

"These are mostly small structures, most often located in Perth, come and collect between $ 2 million and 5 million Australian dollars \[from 1.6 million to 4 million, Ed] on the Sydney Stock Exchange in order to continue their exploration, before proceeding to the exploitation of deposits in two years, "explains Eddie Grieve, Director in charge of developing the ASX. He finds "a real momentum in recent years, following the successes of many Australian companies in Africa."

[B]Lure[/B]

Mike Ralston, CEO Balamara Resources, next four years on the ASX and currently competing to develop a phosphate project in Togo, "the attractiveness of Australian investors for African mines has never been stronger" . In recent months, however, it shows some signs of weakness, particularly because of the slowdown in the Chinese economy. If the Australian investment in Africa is estimated at between 15 billion and 25 billion euros over the last decade, the amount for 2012 is just over 1 billion euros, while nine additional companies have landed at the same time on the continent.

"More and more operators are prospecting in Africa. The number of projects seeking funding is more important, "says the boss of Balamara. In fact, victims of their own success in Africa, Australian companies are facing tougher competition. "The history of Australian mining sector has always been marked by strong growth peaks, followed by more or less long periods of freezing investments," says Peter Rudd. Companies must be patient. And with them the African countries wishing to give them the value of their mining.