17756 Africa Research Bulletin
the nancing. Much rests on the ques-
tion of whether the development agree-
ments are legally binding, with some
form of international arbitration look-
ing increasingly probable. With mining
companies already having heavily
invested, the authorities appear to be
taking the view that signicant with-
drawal by the mining companies is
unlikely. Also, in contrast to the years
immediately after privatisation, when a
single large investor dominated the sec-
tor, there has recently been a relative
proliferation of private sector investor
interest. This puts the authorities in a
much stronger position to negotiate
revised deals, especially since bilateral
and multilateral donors are backing
revising initial agreements. The govern-
ments hand is also strengthened by the
increasing calls by the opposition and
civil society for a fairer deal.
Analysts say the proposals, if adopted,
will reduce mining protability, but the
structure of the tax changes suggests
that most companies can still be prot-
able. Zambias low level of external
debt in the wake of debt relief
($1,054.5m at end-2007) also compares
favourably with foreign exchange
reserves of $1,090.2mequivalent to
3.6 months of import cover. Moreover,
despite booming metals prices, it is
Zambias non-mining, non-traditional
exports that have been growing fastest.
Although many have questioned the
benets of the recent copper boom,
Zambia has come a long way since
2002. Its economy is now more resilient
to potential shocks. (NewsAfrica 31 3)
IRON ORE
Liberia
Delta of South Africa has won the
western cluster concession.
Delta Mining Consolidated (DMC), the
Johannesburg-based diversied junior
exploration and mining group, has won
the $1.6bn concession to develop the
Western Cluster Iron Ore Deposit in
Liberia. DMC currently trades in the
South African, SADC and West African
markets. It beat various rival bids for
the Liberian concession including those
from Indias Tata Steel, the worlds
sixth-largest steel maker, Sinosteel Cor-
poration, Xinxing Group, Rio Doce
South Africa, ArcelorMittal and Bahlodi
Africa.
The Western Cluster Iron Ore Deposits
includes the Mano River Iron Ore
Deposits, the western portion of Bomi
Hills Iron Ore Deposits and the Bea
Mountains Iron Ore Deposits. DMC
also has plans to begin operations in
Namibia, Botswana, the DR Congo and
A B
 Blackwell Publishing Ltd. 2008.
the Central African Republic. (African
Business, March)
A mandatory due diligence investiga-
tion is expected to be nalised later in
the year to formalise the agreement.
The provisional award of the project,
which covers three mining areas, a
pelletising plant and road, rail, power,
water and upgraded port facilities, was
announced by Liberian President Ellen
Johnson Sirleaf in January.
Delta would also draw up a community
development action plan including ele-
ments such as poverty alleviation,
social development, training and
empowerment of local communities, it
said. Technically and nancially,
Delta in its own right, and through
strong associations with key players
such as the Industrial Development
Corporation, Cape Lambert Iron Ore,
The Mineral Corporation and Canac-
cord Adams, has not only the capacity
to develop a world class mine, but also
the infrastructure to support such a
project, Delta CEO Heine van Nie-
kerk said.
The companys website said it planned
to outline an indicated resource from
three deposits that would be used to
raise funds.
It envisaged production of 5m tons of
ore a year from each of the Mano
River and Bomi deposits and 10m tons
a year from the Bea deposit. (Business
Day, Johannesburg, 3 3)
OIL AND GAS
Libya
Exploration and prospecting deals
are made with new partners.
The Libyan national oil company
(NOC) and US oil giant Exxon Mobil
on February 27th signed an oil produc-
tion, prospecting and sharing accord in
Tripoli.
The agreement was signed by the NOC
leadership committee secretary, Dr
Choukri Ghanem, and the Chairman
and Managing Director of Exxon
Mobil Limited, Philip Goss. The accord
concerns the prospecting and sharing of
production of Bloc 21 onshore.
Exxon Mobil will implement a mini-
mum prospecting programme compris-
ing a seismic study on 4,000 square
kilometres and another seismic study
on a surface area of 2,000 square kilo-
metres estimated at $97m.
The American company will pay a sign-
ing subsidy of $72m in one month from
the coming into force of the accord and
will devote $25m to the nancing of a
Commodities
training programme during the pros-
pecting period. (PANA, Tripoli 27 2)
NOC has also signed a gas exploration
deal with Americas OXY Libya and
the United Arab Emirates (UAEs)
Liwa Energy Ltd consortium, Libyan
news agency Jana reported on Febru-
ary 19th.
The deal, which the consortium won at
the fourth round of bidding organised
by the Libyan corporation in December
2007 (Vol. 44, p. 17680), stipulates
exploration and production-sharing in
the 103 area in the Sirte basin, Jana
reported.
The consortium will pay $10m for sign-
ing the contract and will invest no
fewer than $70m in the implementation
of the project. (Jana 19 2: BBC Mon.)
A deal with Anglo-Dutch company,
Shell, provides for a sharing of produc-
tion in area number 89 in the Sirte
basin, which was won by Shell during
the fourth round, which was set aside
for gas exploration on December 9th
2007. The agreement also stipulates
that the company carries out a three
dimensional seismic survey of an area
of 1,750 square metres, and the digging
of six exploration wells.
Shell company will, according to this
agreement, provide a signing grant
worth $103m. The company will also
invest $59m to carry out this project.
(TV Tripoli, 19 2: BBC Mon.)
ZINC
Burkina Faso
The Perkoa mine is the rst in the
region.
AIM Resources Ltd is an Africa-
focused exploration and mining
company.
The most advanced project is the com-
panys Perkoa zinc mine in Burkina
Faso, which is currently under con-
struction. On completion it will become
the rst zinc mine in West Africa and
the rst base-metals mine in Burkina
Faso.
The Perkoa zinc mine is a volcanogenic
massive sulphide (VMS) deposit situ-
ated in the Sanguie Province of Burkina
Faso, 120km west of the capital,
Ouagadougou. The mine is located
35km by road from the countrys third-
largest town, Koudougou, and it is
linked by rail to Abidjan, the capital of
neighbouring country Cote dIvoire,
where port facilities exist for the dis-
patch of Perkoas zinc concentrates.
AIM Resources was attracted to pursu-
ing projects in Burkina Faso after the
country introduced a new Mining Act
C