Ann: Grande Cote Update , page-5

FACTBOX-Senegal's nascent mining industry.

Tue, 13th Apr 2010 10:51

April 13 (Reuters) - Senegal has begun a drive to emulate some of its West African neighbours by aiming to exploit its mineral resources, which include gold and iron ore.
Australia-and Canada-listed firm Mineral Deposits poured the country's first industrially produced gold last year, and several companies have exploration and development projects in Senegal.

Following are the main companies active in Senegalese mining, a sector in which the government is seeking foreign investment.

ARCELORMITTAL

The world's biggest steelmaker said last year it was suspending development of Faleme, a $2.2 billion iron ore project in southeastern Senegal that was due to begin producing in 2011. It said the project was being put on hold as a result of the global economic downturn, but that it could reconsider its decision when the market improves. The government is keen for the project to be restarted.

BAMBUK MINERALS

Bambuk, a privately owned firm, has two exploration permits for gold in eastern Senegal.

BASSARI RESOURCES

Australia-listed Bassari is exploring for gold in the Birimian belt, an area of mineralisation which is home to most of Senegal's mining projects. It holds exploration permits for the Moura, Sambarabougou and Bounsankoba prospects.

IAMGOLD

Toronto-listed Iamgold, which has operational mines in Ghana and Mali, bases its West African exploration team in Dakar. It controls 63,000 hectares in the southeast of Senegal which it is exploring for gold.

MINERAL DEPOSITS

The firm's Sabodala operation, around 650 km east of Dakar, was the first in Senegal to produce gold, which it began doing in 2009. Mineral Deposits recently said it would expand the plant's processing capacity to 3.5 million tonnes of rock per year by 2011 from a current 2 million tonnes, a $55 million project. It expects to produce 170,000-180,000 ounces of gold in 2010.

It also runs the Grande Cote mineral sands project along a 100 km strip of coastline, which the firm says could produce 75,000 tonnes per year of zircon, used in ceramics, and 600,000 tonnes per year of ilmenite, the raw material for white pigment. A feasbility study is due for completion in May, after which the company will try to raise at least $300 million in order to start up by 2012/13.

OROMIN EXPLORATIONS

Canada's Oromin is exploring for gold adjacent to the Sabodala project. It is working on a full feasibility study which it expects to be completed in June, but subject to its results is aiming for startup around 2012 of an operation which would produce roughly 150,000-200,000 ounces of gold per year.

RANDGOLD RESOURCES

London-listed Randgold Resources, which operates the Loulo and Morila mines in Mali, is exploring for gold at Massawa, which contains more than 3 million ounces of gold. The company intends to spend $300 million on the project, which it expects to begin producing by 2013.

SN MINERAL MINING

Privately owned SN is analysing for gold samples from its Velingara licence area, close to the border with Mali. It expects to have a plausibility study completed by 2011/12, by which time it estimates it will have spent 10 million euros ($13.60 million) on exploration work.

(Compiled by Daniel Magnowski; Editing by Amanda Cooper)

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