an article of interest if u want 2 read

A news article that may be of interest for those who hadnt read it. interpret it any way you like!


Out of Africa, a come-hither from Consort
- Friday, October 07, 2005 at 00:38


Of all the thousands of mining exploration companies in all the world, big and small, Range Resources has been tapped on the shoulder to control the as-yet unknown oil, gas and mining resources of Puntland.
It sounds like an apt name for the Australian junior to go looking in - a semi-autonomous state in northeastern Somalia, which is trying to govern itself and restore an economy badly affected by last year's tsunami.

Puntland President Mohamud Muse Hirsa and his Government have no aspirations towards independence, but seek to be part of a federal Somali state if law and order ever return to the south of the country - and, in particular, the capital Mogadishu.

Ancient Egyptians told of a Land of Punt in the area now known as Somalia. The story of Range's involvement is no less fascinating. Executive director Jim Marinis said he was not sure why Range was chosen, or even whether it was the first choice.

The initial feeler was through the humanitarian organisation, Kids in Need (part of World Vision), that was trying to help Puntland get some economic activity started. Mr Marinis said contact was made with Range through "connections" and the deal negotiated through lawyers in Australia and England.

Yet Range has never had direct dealings with the company set up by Puntland authorities to control the territory's resources, and Mr Marinis said he knew little about Consort Private apart from the fact that its directors included government ministers. "I don't know who the directors are."

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Range will take a 50.1 per cent interest from Consort in all the hydrocarbon and mineral resources of the 212,000sqkm territory controlled from the town of Garowe.

Range will pay Consort an initial $US1.5 million ($2 million) for the 50.1 per cent interest, with further payments totalling $4.4 million, along with 85 million Range shares and options.

Mr Marinis said Range's role would be to assess the exploration potential of Puntland and then farm out prospects to large mining and oil companies.

So Range, whose shares were selling at 3c yesterday, expects to be soon sitting across the negotiating table from the likes of Shell, Conoco and Phillips Oil.

He said Range was not concerned about Somalia getting its house in order, adopting a national government that could overrule decisions made by the Puntland authorities. "That will take many years to come - it's many, many years away."

The potential is promising. Agip, Shell, Amoco and others have drilled around the Horn of Africa but most data had been destroyed, the company said. But there's known iron, manganese, tin, lead-zinc and copper deposits. Range is working on a capital raising to get people on the ground in Puntland. "We need to go there and start geological testing," Mr Marinis said.

Source: Business News (news.com.au)