Thursday 18 July 2019

Anglo-African seeks $40m for project in Ebola-hit nation

Anglo-African on the ground in Guinea in West Africa
Anglo-African on the ground in Guinea in West Africa
Gavin McLoughlin

Gavin McLoughlin

Irish mineral explorer Anglo-African Minerals is looking for $40m (€35m) to get a bauxite project in Guinea into production.

The funds would be used to set up its mining operations and carry out environmental and feasibility studies.

The Tipperary-headquartered company has completed two preliminary drilling campaigns on the project, and has received a scoping study that indicates the project is economically viable in certain conditions.

Chief executive James Lumley told the Irish Independent that he hopes the firm will be producing bauxite - a raw material used in the production of aluminium - by the third quarter of 2016.

Accessing transport infrastructure can be difficult for mining companies in Africa --some companies have to build it themselves - but Mr Lumley said Anglo-African is in a "fortunate position".

"We can access the existing infrastructure with agreements with the government. Our capital expenditure is a lot lower so therefore it makes it more economically viable to start pressing forward into production."

John Foster, Africa correspondent for Debtwire's Central and Eastern Europe, Middle-East and Africa division, said falling mineral prices and the spread of Ebola have made it difficult for mining companies with interests in West Africa.

"But despite that I think Anglo-African have done very well," Mr Foster said.

"They've got a reasonably good resource there and they should be able to go into production if they get the money."

Irish Independent

Also in Business