The future of Mining Industry in Guinea

Ibrahima Soumah

Description

Guinea was identified as a mining country long time ago since quantity of gold coming from the Bouré region, near Siguiri, constituted the power and reputation of medieval Mandingue empire. For the Guinean people and those observing them, the real scandal is having so much resources and remaining among the poorest countries in the world with the HDI classification ranking Guinea to the 160 th place out of 175 countries, while its income per capita is below $500/year. This book provides information on the potential and the evolution of the Guinean mining sector.

Sujets

• Économie

Informations

• Publié par: L'Harmattan
• Date de parution: 01 janvier 2009
• Nombre de lectures: 349
• EAN13: 9782336258416
• Langue: Français
• Poids de l'ouvrage: 8 Mo

Extrait

© L‘HARMATTAN, 2008
5-7, rue de l’École-Polytechnique ; 75005 Paris
http://www.librairieharmattan.com [e-mail] [e-mail]
9782296074026
EAN : 9782296074026
The future of Mining Industry in Guinea

Ibrahima Soumah
Table of Contents
Copyright Page Title Page PREFACE - By Mr. Leonard JACOB Junior Former Vice-President of Alcoa Foreword INTRODUCTION CHAPTER I - PROFILE OF GUINEA CHAPTER II - GEOLOGICAL CONTEXT AND MINING POTENTIAL CHAPTER III - EXPLORATIONS AND/OR MINING COMPANIES CHAPTER IV - FRIGUIA-KONKOURÉ PROJECT CHAPTER V - SOME MEMORIES ON THE FRIGUIA COMPANY CHAPTER VI - THE BOKÉ PROJECT: ROLE AND IMPORTANCE OF OFAB CHAPTER VII - THE BOKÉ PROJECT : CBG’S P ART (THE MINING PROJECT) CHAPTER VII - SOME RECOLLECTIONS ON CBG AND THE BOKÉ PROJECT CHAPTER IX - OBK/SBK/CBK CHAPTER X - ORGANIZATION OF THE MINING ADMINISTRATION CHAPTER XI - IMPACT OF THE SPECIAL TAX ON MINING PRODUCTS (TSPM) CHAPTER XII - ECONOMIC AND FINANCIAL IMPACTS OF MINING CHAPTER XIII - SOCIAL AND CULTURAL IMPACTS OF MINING IN GUINEA CHAPTER XIV - MINING MEGAPROJECTS: AN OPPORTUNITY FOR GUINEA CONCLUSION
with the compliments of Rio Tinto and Simfer
And Alcoa Guinea
NB: all opinions expressed in this book involve the sole responsibility of their authors
PREFACE
By Mr. Leonard JACOB Junior Former Vice-President of Alcoa
Mr. Ibrahima SOUMAH is undeniably the most qualified person who can write a book dealing with the future of mining industry in Guinea. Due to his long experience in the sectors of mine and geology, he has been a witness to the creation of major and middle size mining projects for a very long time. Besides, for some of those projects, such as the Nimba-Simandou iron ore project, he took part in their development as an engineer, as well as a consultant, Ambassador in Liberia, senior advisor and finally as the Minister of Mines and Geology.
However, Mr. Ibrahima SOUMAH’s involvements easily exceeded the technical and financial aspects of mining programs. In the 1970s, he was one of the founders of the Institute of Mines and Geology of Boké while he was recently appointed as Minister of Technical Education and Vocational Training. Thus, the training and development of Guinean skilled executives working for the nation was obviously one of his highest priorities. The lack of success in this field meaning there could be no comprehensive future for mining industry in Guinea. I was personally privileged and pleased to work closely with Mr. SOUMAH.
My first visit to Guinea dates back to April 1963. At that time, I was working as a research geologist at the Aluminum Company of America (ALCOA). Six years of negotiations between Guinea and six private companies ended up with the building, the commissioning and the launch of operations for Guinea Bauxite Company, then followed by my transfer to of the Mining Company of Dinguiraye (Société Minière de Dinguiraye - SMD) in Léro (1,200 kilo of gold a year), then to the rehabilitation of Friguia and finally to the creation of Global Alumina project making altogether a 23-year residency in Guinea.
During part of those years, Mr. SOUMAH’s presence and expertise were always sought at the time of negotiations and problem solving. He was always available, in a good mood and well prepared. He has become a genuine friend of mine who helped me to avoid the traps of political life and to master the practical and administrative complexities that are very often met in Guinea.
On the whole, I can only compliment Mr. Ibrahima SOUMAH for this initiative consisting in establishing a conclusive guide aimed at developing mining and industrial sector for the 21 st century.
Foreword
This book does not claim to cover all aspects of mining activities in Guinea. Its main purpose is to give an update on the situation regarding a key sector in the country’s economical and social life. It is also a means to inform future senior staff of the national economy about the events that often go along with the creation and the development of a complex industrial project. For that reason, a significant part will be dealing with facts and events whenever it has been deemed useful and interesting. Our wish is that this task will be taken up and completed by others within the scope of senior staff continuing education and decision-makers’ objective information.
We are thankful to everyone who helped or got involved in our interviews, and especially to the department of mine’s high-ranking officials and mainly to all executives and anonymous workers of the mining industry for their utter dedication to duty and patriotism at all times.
INTRODUCTION
In 1325, when Kankan Moussa, the emperor of medieval Mali, went to Mecca with 1,500 slaves each carrying a gold ingot on their heads, the Egyptian dinars exchange rate that played the role of present day dollar at that time, tumbled owing to the massive introduction of the yellow metal in Egypt.
Gold was collected within the entire empire and mainly in the region of Bouré, which is located inside of Siguiri prefecture in Guinea. No wonder then, that the empire’s prestigious capital was located in the same region. Indeed, Niani, which is presently one of the main archeological sites of Guinea, is a few kilometers away from Siguiri.
Gold mining in Guinea obviously dates back well beyond the Middle Ages, as attested by the strength of Ghana Empire that traded gold for salt and cloth with North Africa.
Consequently, the mining tradition is well embedded in this country, especially in its eastern region. Gold and minerals have no longer had secrets for the inhabitants for a long time and very resourceful artisanal men were very quickly able to melt iron ore and make guns and other tools.
However, it’s during the colonial era that the country found out its huge mining potentialities of iron, gold of course, but also of diamond and mainly bauxite that was later going to change Guinea’s economic life fully.
Besides, after the colonization and despite the country’s economic collapse under the hyper-centralized regime of President Sekou Touré, the new State was able to survive, and that even after the advent of the second Republic, only thanks to the income stemming from mining exploitation.
With about 10,000 permanent jobs, for more than 30 years, the mining sector has secured 60% of government income revenues, 80% of export earnings in foreign currency, and contributed to the built-up of Guinea’s GDP up to 30%.
CHAPTER I
PROFILE OF GUINEA
The national territory of Guinea is located in the westernmost region of the African continent between 7° and 12° latitude north, and 8° and 15° longitude west covering a surface area of 245,000 Km2.
It is bordered in the west by the Atlantic Ocean on 300 km of coast while its inland borders are surrounded by 6 countries, namely Guinea-Bissau, Senegal, Mali, Ivory Coast, Liberia and Sierra Leone. Guinea is divided into four natural regions that are Coastal Guinea, Middle Guinea, Upper Guinea and Forest Guinea.
Administrative map of Guinea:

Coastal Guinea includes a coast of 50 to 90 km large with extended bays, marshy lagoons covered with mangroves, estuaries of numerous rivers. This zone houses Conakry, the capital, which is built on the Kaloum peninsula. In addition to that, Coastal Guinea has 2 regional capitals: Kindia and Boké.
Middle Guinea is the highland region of Fouta Djalon with its highest point rising to 1,500 meter near Mali.
This region is home to the source of many large West-African rivers: Gambia, Konkouré, Senegal, Niger, etc., which earned Guinea’s the name of the Water Tower of Africa.

Upper Guinea is the land of huge plains watered by the Niger and Senegal river basins. Forest Guinea has a humid subequatorial climate with wooded mountains rising to 1,850 m at its highest point located in Mont Nimba.
The Guinean climate consists in a rainy season alternating with a long dry season except in the Forest Region that has a long rainy season. The average rainfall is 2,000 mm a year with peaks of 4,000 mm within the area of Conakry and Coyah.
The global population of Guinea exceeded 8,000,000 in 2004, with a yearly progression of 2.7% in the last ten years.
Like many developing countries, this population is naturally very young, with 70% of them under 30 years of age, and with an increasing number of women who make up 52% of the population. In addition, it is considered that 60% of the population live in the rural areas. The average density of this population is 28 inhabitants per square kilometer.

Significant growth of the resident population between 1983 and 1996

Source: Resen — World Bank in Guinea

Applicable growth rate.

Source: Resen - World Bank in Guinea
Primary school education has taken a great leap forward in Guinea if we consider that the literacy rate rocketed from 30% to 80% in 10 years with the most rapid growth observed among girls. This rate has placed Guinea among one of the front runners of comparable West African countries and indicates the reach of the EFA (Education for all) target through universal education by 2015.

International comparison of primary education literacy rate (in 1990 and 2004) Country Gross rate of literacy in primary schools ( in % ) 1990 2004 Guinea 34 81 Benin 58 97 Burkina Faso 33 50 Mali 27 61 Mauritania 49 88 Niger 29 48 Senegal 59 79 Togo 1 109 124 Average 7 countries 50 79

Source: Resen — World Bank in Guinea
Guinea&#