Profile
Tan Range Exploration (T.TNX) is a unique, publicly-traded financial gold company whose business strategy is to acquire royalty interests in gold production from its core assets in the Lake Victoria greenstone belt (LVGB) of Tanzania where a reported 40 million ounces of gold have been discovered since the mid-1990's.
Tan Range is presently the largest landholder in the LVGB - one of the most prolific goldfields in the world. Established producers in this belt rank within the lowest percentile globally in terms of cash production costs.
Our royalty strategy offers investors significant, low-risk leverage to gold prices, limited shareholder dilution, and the potential to have their shares valued at a premium in the marketplace.
Business Plan
The Company's long history in Tanzania, the strategic location of its Lake Victoria properties, coupled with its strong in-house technical capability and capacity to identify and acquire high quality projects in a timely manner, distinguishes Tan Range from its competitors and provides an asset base for the Company's royalty strategy to unfold.
In actual fact, the Company's practice of farming out (optioning) its landholdings to qualified industry partners for pre-production royalties and direct royalties in future gold production positions Tan Range to receive a much higher market valuation than other companies in its peer group.
The Company's business strategy is a variation or hybrid of the one employed by Franco Nevada Mining which merged with Newmont Mining and Australia's Normandy Mining to form the world's largest gold producer.
At the time, Newmont paid 97 times annual 2001 sales for Franco Nevada, a premium that will certainly be used as a yardstick in future takeovers of royalty companies. Royal Gold, the only "pure" royalty play on the market, was trading at 32 times sales in June of 2003 and would likely be valued much higher in any takeover scenario.
Franco Nevada's strategy involved the purchase of production royalties on the open market whereas Tan Range intends to develop royalty income by way of property agreements with industry partners, most of them major companies. In essence, Tan Range believes it can find gold cheaper through exploration than buying gold reserves on the open market.
In order to exploit the potential on our holdings in the Lake Victoria region, we first define gold potential on the properties (in effect value-adding them) after which they are dealt to industry partners who meet strict internal selection criteria.
Entering into partnerships with major companies to exploit the mineral potential on our properties helps mitigate financial risk to the Company and its shareholders. This is extremely important given the cyclical nature of the minerals business and the Company's reliance on capital markets to fund its activities.
In our situation, the funding commitment for these properties is the responsibility of our industry partner which is usually a major company with the financial capacity and commitment to meet its long term obligations.
All of our property agreements are structured such that we receive advanced royalties before production and escalating royalties after production that are based on rising gold prices.
For most properties in our exploration portfolio, we prefer industry partners with assets net of liabilities of at least C$100,000,000 and gross annual revenues exceeding $500,000,000. Nonetheless, we have partnered with junior companies that are willing to advance our prospecting licenses on terms generally accepted by larger companies.
Because our properties are also prospective for diamonds (the historic Mwadui pipe of the Williamson diamond mine is located in the area of our core holdings), we have structured our royalty agreements to include diamond production as well. In the past year, we have also acquired a major land position in Tanzania's Kabanga Nickel Belt where Barrick Gold and Falconbridge Ltd. are developing a high grade nickel deposit.
At this juncture - and assuming the various royalty projects we have negotiated advance as expected - management of Tan Range expects that in the near future advanced royalty payments from our holdings will cover the majority of the Company's general and administrative expenses, allowing Tan Range to maintain a sound working capital position which has been the number one priority of its Chairman and CEO, James E. Sinclair.
More information: Tan Range - Tulawaka project.
Management Team:
Jim Sinclair
Chairman, CEO & Director
Marek Kreczmer M.Sc.(Geol.), B.Sc.(Geol.)
Chairman-Technical Committee/Director
Mrs. Victoria Luis MBA, CSCPA and AICPA member
CFO
Dr. Norman Betts, PhD, FCA
Director
Anton Esterhuizen
Director
Dr. William M. Harvey BA, PhD,
Director
Ulrich Rath B.Sc.(Hon), M.Sc.(Geol)
Director
Rosalind Morrow LL.B
Director
Corporate Head Office:
Tan Range Exploration Corporation
93 Benton Hill Road
Sharon, CT 06069
Telephone: 860.364.1830 860.364.1830
http://www.tanzanianroyaltyexploration.com/s/Home.asp
Showing posts with label Gold Diamonds. Show all posts
Showing posts with label Gold Diamonds. Show all posts
Wednesday, December 30, 2009
Sub-Sahara Resources N.L. (ASX: SBS)
Sub-Sahara Resources N.L. is an Australian junior exploration company based in Perth, Western Australia.
The Company has an exploration focus in Eritrea and Tanzania – Nyanzaga.
Nyanzaga Project (PL1501/2000, PL1700/2001, PL1772/2001) - 91% & PL1596/2000 - 90%
The four licences that make up this project are located approximately 50km southwest of Mwanza and about 40km northeast of the 16.4Million ounce (Moz) Bulyanhulu Gold Mine. The project covers part of the easterly extremity of the Archaean Sanza-Geita greenstone belt and is dominated by Nyanzian Group lithologies made up of felsic volcanics, massive and laminated tuffs, coarse grained pyroclastics and banded iron formations (BIF).
Placer Dome Africa Limited (“Placer”), a subsidiary of Placer Dome Inc, funded a further US$250,000 (A$470,000) of exploration consisting of 1,325.22 metres of diamond drilling in four new drill holes and three extensions to earlier diamond drill holes, with drilling designed to further test both the Tusker and Serengeti Zones.
Sub-Sahara confirms that the assay results from all 7 holes further support the broad +120 metre wide zone of gold mineralisation at Tusker and the drill holes verify an open strike length of over 450 metres. Potential to extend the Tusker zone both along strike and at depth remains strong.
Management Team:
Mr. Henry David Kennedy
Chairman
Mr. Michael Richard Griffiths
CEO
Mr. Desmond John Foynes
Director
Mr. Peter Lawson Munachen
FCA, FAICD
Mr. Alasdair Smith
Exploration Manager
Head Office:
Perth Business Centre
Western Australia 6849
Telephone: +61 8 9227 3260 +61 8 9227 3260
http://chalicegold.com/
The Company has an exploration focus in Eritrea and Tanzania – Nyanzaga.
Nyanzaga Project (PL1501/2000, PL1700/2001, PL1772/2001) - 91% & PL1596/2000 - 90%
The four licences that make up this project are located approximately 50km southwest of Mwanza and about 40km northeast of the 16.4Million ounce (Moz) Bulyanhulu Gold Mine. The project covers part of the easterly extremity of the Archaean Sanza-Geita greenstone belt and is dominated by Nyanzian Group lithologies made up of felsic volcanics, massive and laminated tuffs, coarse grained pyroclastics and banded iron formations (BIF).
Placer Dome Africa Limited (“Placer”), a subsidiary of Placer Dome Inc, funded a further US$250,000 (A$470,000) of exploration consisting of 1,325.22 metres of diamond drilling in four new drill holes and three extensions to earlier diamond drill holes, with drilling designed to further test both the Tusker and Serengeti Zones.
Sub-Sahara confirms that the assay results from all 7 holes further support the broad +120 metre wide zone of gold mineralisation at Tusker and the drill holes verify an open strike length of over 450 metres. Potential to extend the Tusker zone both along strike and at depth remains strong.
Management Team:
Mr. Henry David Kennedy
Chairman
Mr. Michael Richard Griffiths
CEO
Mr. Desmond John Foynes
Director
Mr. Peter Lawson Munachen
FCA, FAICD
Mr. Alasdair Smith
Exploration Manager
Head Office:
Perth Business Centre
Western Australia 6849
Telephone: +61 8 9227 3260 +61 8 9227 3260
http://chalicegold.com/
Resolute Limited (ASX: RSG)
Resolute has a 100% interest in the project Golden Pride through its Tanzanian subsidiary, Resolute (Tanzania) Limited. The Golden Pride site achieved a record 644 days without a lost time injury in December 2004. The operation’s won the Presidential Environmental Excellence and Leadership Award for the second consecutive time. The current mine is designed to produce an average of approximately 160,000 ounces of gold per annum at a cash cost of US$230 per ounce over the remaining three to four year mine life.
The 2005 Financial Year exceeded expectations with production of 149,866 ounces of gold at a cash cost of US$269. Further enhancements to process plant carbon management improved the gold recovery rate to 95.6% while at the same time plant throughput increased to a record 2.98Mt.
The open pit produced 7 million cubic metres of material with an emphasis on waste production from the north and south cutbacks in the central portion of the pit in order to secure ore production from 2006. Ore production came from the central and eastern sections of the pit with the eastern end completed mostly to design limits.
Development drilling programmes on the north-east end of the pit identified a new ore zone and has resulted in a new resource being developed. The North East pit abuts the eastern end of the Golden Pride open pit and provides additional oxide ore feed to the plant through to the end of the 2005 calendar year.
The treatment plant continued to improve its performance with higher throughput rates at better than forecast gold recovery rate levels. A second thickener was commissioned during the year and has greatly improved water recovery at higher throughputs. The plant treated 2.98Mt of ore, well above the design capacity of 2.6Mtpa and last year’s record of 2.8Mt.
The Golden Pride mine has now produced in excess of 1.1 million ounces of gold since commissioning.
Executive Team:
Chairman – PE Huston
Chief Executive Officer – PR Sullivan
Non-Executive Director – TC Ford
Non-Executive Director – HTS Price
Head Office:
4th Floor, The BGC Centre
28 The Esplanade
Perth, Western Australia 6000
Postal: PO Box 7232 Cloisters Square
Perth, Western Australia 6850
Tel: + 61 8 9261 6100 + 61 8 9261 6100
Fax: + 61 8 9322 7597
contact@resolute-ltd.com.au
http://www.resolute-ltd.com.au/
The 2005 Financial Year exceeded expectations with production of 149,866 ounces of gold at a cash cost of US$269. Further enhancements to process plant carbon management improved the gold recovery rate to 95.6% while at the same time plant throughput increased to a record 2.98Mt.
The open pit produced 7 million cubic metres of material with an emphasis on waste production from the north and south cutbacks in the central portion of the pit in order to secure ore production from 2006. Ore production came from the central and eastern sections of the pit with the eastern end completed mostly to design limits.
Development drilling programmes on the north-east end of the pit identified a new ore zone and has resulted in a new resource being developed. The North East pit abuts the eastern end of the Golden Pride open pit and provides additional oxide ore feed to the plant through to the end of the 2005 calendar year.
The treatment plant continued to improve its performance with higher throughput rates at better than forecast gold recovery rate levels. A second thickener was commissioned during the year and has greatly improved water recovery at higher throughputs. The plant treated 2.98Mt of ore, well above the design capacity of 2.6Mtpa and last year’s record of 2.8Mt.
The Golden Pride mine has now produced in excess of 1.1 million ounces of gold since commissioning.
Executive Team:
Chairman – PE Huston
Chief Executive Officer – PR Sullivan
Non-Executive Director – TC Ford
Non-Executive Director – HTS Price
Head Office:
4th Floor, The BGC Centre
28 The Esplanade
Perth, Western Australia 6000
Postal: PO Box 7232 Cloisters Square
Perth, Western Australia 6850
Tel: + 61 8 9261 6100 + 61 8 9261 6100
Fax: + 61 8 9322 7597
contact@resolute-ltd.com.au
http://www.resolute-ltd.com.au/
Placer Dome (NYSE: PDG)
Placer Dome is one of the world’s largest and most successful gold mining companies. Based in Vancouver, Canada, the company has interests in 16 mining operations in seven countries and employs more than 13,000 people around the world. The company’s shares trade on the New York, Toronto, Swiss and Australian stock exchanges and Euronext-Paris under the symbol PDG.
In 2003, Placer Dome expanded its presence on the African continent with the acquisition of the North Mara mine in the highly prospective northern region of Tanzania.
North Mara (100% owned): Acquired in mid-2003, this mine in Tanzania is a relatively new facility situated in a largely unexplored and highly prospective gold district. North Mara is surrounded by an extensive package of land, where an aggressive exploration program has added more than one million ounces of reserves since the acquisition. Gold production in 2005 is expected to be approximately 290,000 ounces, a 38% increase over 2004 due to mining operations moving into the higher grade Gokona pit.
On January 20, 2006 Barrick Gold Corporation acquired 81% of shares and gained control of Placer Dome.
Head Office:
Suite 1600 - 1055 Dunsmuir Street
Vancouver BC V7X 1P1
Canada
Phone: +1 604 682 7082 +1 604 682 7082
Toll free: +1 800 565 5815 +1 800 565 5815
Fax: +1 604 682 7092
http://www.barrick.com/
In 2003, Placer Dome expanded its presence on the African continent with the acquisition of the North Mara mine in the highly prospective northern region of Tanzania.
North Mara (100% owned): Acquired in mid-2003, this mine in Tanzania is a relatively new facility situated in a largely unexplored and highly prospective gold district. North Mara is surrounded by an extensive package of land, where an aggressive exploration program has added more than one million ounces of reserves since the acquisition. Gold production in 2005 is expected to be approximately 290,000 ounces, a 38% increase over 2004 due to mining operations moving into the higher grade Gokona pit.
On January 20, 2006 Barrick Gold Corporation acquired 81% of shares and gained control of Placer Dome.
Head Office:
Suite 1600 - 1055 Dunsmuir Street
Vancouver BC V7X 1P1
Canada
Phone: +1 604 682 7082 +1 604 682 7082
Toll free: +1 800 565 5815 +1 800 565 5815
Fax: +1 604 682 7092
http://www.barrick.com/
MDN Northern Mining (TSX: MDN)
Corporate Profile
MDN Northern Mining is a Canadian mining company focused on the discovery and development of new gold and base metal deposits that can provide a superior return to our shareholders. We are actively exploring highly prospective areas in Tanzania and Eritrea, East Africa, and in the Province of Quebec, Canada. In 2005 we became gold producers through our participation in the Tulawaka Mine in Tanzania. Our Company is managed by an experienced team and has a strong Board of Directors with well known industry players.
A brief corporate history
NORTHERN MINING Explorations Ltd. ("MDN Northern Mining") is a Canadian mining company incorporated pursuant to the Mining Act (Province of Québec) by the issuance of letters patent dated January 27, 1954, under the name Northern Quebec Explorers Ltd. On September 4, 1987, the Company was continued under Part 1A of the Companies Act (Québec) by the issuance of articles of continuance and its corporate name was changed to Northern Mining Explorations Ltd./Explorations Miničres du Nord Ltée. Pursuant to the reorganization of the Canadian exchanges, all the common shares of the Company were listed and posted without restriction at the Toronto Stock Exchange (TSX) at the opening on December 6, 1999, under the symbol "MDN".
MDN NORTHERN MINING has a 30% participating interest in the Tulawaka Project in Tanzania, which started commercial production in March 2005 as theTulawaka Gold Mine.
Click here for more information.
DIRECTORS
Carlos H. Bertoni
David A. Fennell
Paul-A. Girard
Serge Savard
Anthony P. Walsh
MANAGEMENT
Carlos H. Bertoni
M. Sc., CEO, P. Geo
Tim Williams
Ph. D., COO
Paul-A. Girard
VP, Investor Relations
Dominique Moreau Treasurer
Treasurer
Contact:
Paul-A. Girard
VP, Investor relations
1010, de la Gauchetičre Ouest
Bureau M-110
Montréal (Québec)
Canada H3B 2N2
Telephone : +1 (514) 866-6500 +1 (514) 866-6500
Fax : +1 (514) 866-3799
Email : info@Xnord.com
Website: www.Xnord.com
MDN Northern Mining is a Canadian mining company focused on the discovery and development of new gold and base metal deposits that can provide a superior return to our shareholders. We are actively exploring highly prospective areas in Tanzania and Eritrea, East Africa, and in the Province of Quebec, Canada. In 2005 we became gold producers through our participation in the Tulawaka Mine in Tanzania. Our Company is managed by an experienced team and has a strong Board of Directors with well known industry players.
A brief corporate history
NORTHERN MINING Explorations Ltd. ("MDN Northern Mining") is a Canadian mining company incorporated pursuant to the Mining Act (Province of Québec) by the issuance of letters patent dated January 27, 1954, under the name Northern Quebec Explorers Ltd. On September 4, 1987, the Company was continued under Part 1A of the Companies Act (Québec) by the issuance of articles of continuance and its corporate name was changed to Northern Mining Explorations Ltd./Explorations Miničres du Nord Ltée. Pursuant to the reorganization of the Canadian exchanges, all the common shares of the Company were listed and posted without restriction at the Toronto Stock Exchange (TSX) at the opening on December 6, 1999, under the symbol "MDN".
MDN NORTHERN MINING has a 30% participating interest in the Tulawaka Project in Tanzania, which started commercial production in March 2005 as theTulawaka Gold Mine.
Click here for more information.
DIRECTORS
Carlos H. Bertoni
David A. Fennell
Paul-A. Girard
Serge Savard
Anthony P. Walsh
MANAGEMENT
Carlos H. Bertoni
M. Sc., CEO, P. Geo
Tim Williams
Ph. D., COO
Paul-A. Girard
VP, Investor Relations
Dominique Moreau Treasurer
Treasurer
Contact:
Paul-A. Girard
VP, Investor relations
1010, de la Gauchetičre Ouest
Bureau M-110
Montréal (Québec)
Canada H3B 2N2
Telephone : +1 (514) 866-6500 +1 (514) 866-6500
Fax : +1 (514) 866-3799
Email : info@Xnord.com
Website: www.Xnord.com
Helio Resource Corp (TSX: V HRC)
Helio is a well-financed junior gold exploration company focused on developing the SMP Gold project in Tanzania into a significant gold resource. Helio controls 27 km of the Saza Shear Zone, the main gold bearing structure in the region.
Since June 2006, the Company has drill-tested thirteen targets, eleven of which are hosted by the Saza Shear Zone. All thirteen targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Kenge Target, which has returned up to 21.95m grading 6.92g/t gold (Company press release dated May 23, 2007).
The primary objective of the current 20,000m drill programme is to outline a resource at the 2km long Kenge target, where infill drilling is ongoing, and to demonstrate the potential to significantly increase upon that resource by drill testing newly defined targets, such as Mbenge (39m @2.6g/t Au) and Porcupine (42m @ 2g/t Au).
In addition to the SMP gold project in Tanzania, Helio has a portfolio of earlier stage projects in Namibia, Botswana and Mozambique. As part of its strategic approach to project development, Helio has joint-ventured a total of 17 of its Namibian licences: 9 to Desert Minerals (UK) Ltd. and 8 to TransAfrican Minerals Limited to fund work on these properties. Helio continues to pursue joint venture partners for its other projects in Namibia, Botswana and Mozambique, while advancing the SMP Gold project in Tanzania.
Management Team:
Christopher J. Mackenzie, M.Sc., C. Geol.
Director & COO
Richard D. Williams, M.Sc., P.Geo
Director & CEO
D. Grenville Thomas, P. Eng.
Chairman
Clifford T. Davis, CA
Director
Stephen M. Leahy
Director
Colin Jones, B.Sc., MausIMM
Director
Head Office:
Helio Resource Corporation
Suite 580 - 625 Howe Street
Vancouver, British Columbia, V6C 2T6
Phone: +1 604 638 8002 +1 604 638 8002
Fax: +1 604 638 8011
e-mail: richard@helioresource.com
irene@helioresource.com
http://www.helioresource.com/s/home.asp
Since June 2006, the Company has drill-tested thirteen targets, eleven of which are hosted by the Saza Shear Zone. All thirteen targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Kenge Target, which has returned up to 21.95m grading 6.92g/t gold (Company press release dated May 23, 2007).
The primary objective of the current 20,000m drill programme is to outline a resource at the 2km long Kenge target, where infill drilling is ongoing, and to demonstrate the potential to significantly increase upon that resource by drill testing newly defined targets, such as Mbenge (39m @2.6g/t Au) and Porcupine (42m @ 2g/t Au).
In addition to the SMP gold project in Tanzania, Helio has a portfolio of earlier stage projects in Namibia, Botswana and Mozambique. As part of its strategic approach to project development, Helio has joint-ventured a total of 17 of its Namibian licences: 9 to Desert Minerals (UK) Ltd. and 8 to TransAfrican Minerals Limited to fund work on these properties. Helio continues to pursue joint venture partners for its other projects in Namibia, Botswana and Mozambique, while advancing the SMP Gold project in Tanzania.
Management Team:
Christopher J. Mackenzie, M.Sc., C. Geol.
Director & COO
Richard D. Williams, M.Sc., P.Geo
Director & CEO
D. Grenville Thomas, P. Eng.
Chairman
Clifford T. Davis, CA
Director
Stephen M. Leahy
Director
Colin Jones, B.Sc., MausIMM
Director
Head Office:
Helio Resource Corporation
Suite 580 - 625 Howe Street
Vancouver, British Columbia, V6C 2T6
Phone: +1 604 638 8002 +1 604 638 8002
Fax: +1 604 638 8011
e-mail: richard@helioresource.com
irene@helioresource.com
http://www.helioresource.com/s/home.asp
Gallery Gold Limited (ASX: GGN)
Gallery Gold Limited is an emerging gold producer with a 100,000-ounce-per-annum project in production at Botswana, a second project expected to go ahead next year in Tanzania and several important exploration programs in southern and eastern Africa.
Buckreef
The Buckreef Project is located 35 kilometers south west of Ashanti/Anglo's 18 million ounce Geita open pit gold mine in the Lake Victorian Archaean greenstone/granite terrane. The gold mineralisation at Buckreef-Rwamagaza is associated with shear zones or splays off the main shear and usually hosted in intensely altered mafic and/or ultramafic rocks. Similar to other gold deposits around the world, areas of extension and dilational zones appear to host the best zones of mineralisation.
Kitongo
The Kitongo Project includes the Kitongo PL, Mwamazengo PL, Mwamazengo South PL and Ugambilo PL which form a contiguous block of tenements 80 kilometres south of Mwanza.
Gold mineralisation has been identified in three areas with the Main Zone having a measured, indicated and inferred resource of 479,000 ounces @ 1.3 g/t Au. To the north west of the Main Zone a new discovery was made in 2001 at Isegenghe Hill where an inferred resource of 75,000 ounces @ 14.4 g/t Au has been estimated. The third occurrence is at Kitongo Hill.
Primary gold mineralisation at Kitongo has a strong structural control along a north west trending regional corridor and is hosted in a mafic volcanic sequence underlying a series of intermediate to felsic volcaniclastic units and sediments composed of cherts, BIF and phyllites. Drilling indicates the gold is associated with silicification, quartz veining and arsenopyrite within brecciated cherts and tuffs.
Gallery has focused on validating the Kitongo data base in view of the numerous local grids used in the past. The Company is following up several untested gold in soil anomalies defined by Ashanti Gold in 2000 under a joint venture with Spinifex. An IP survey is also due to commence over the main areas of mineralisation to better define the controlling structures.
John T Shaw BSc, FAusIMM, MCIM, FAICD, SME
Chairman
Hamish J Bohannan B(Eng)Sc (Hons), M(Eng)Sc, MBA,FAusIMM, CEng
Managing Director
Michael P Curnow
Non-executive Director
Craig R Munro FCPA, FAusIMM, FAICD
Non-executive Director
P Buck BA Earth Sciences, MSc (Geology)
Non-executive Director
East Africa Mines Ltd.
Plot No 103W Capri Point
Mwanza Tanzania
Postal Address:
PO BOx 1678
Mwanza Tanzania
Telephone: +255 28 250 2236 +255 28 250 2236
Fax: +255 28 250 0298
Email: eastaf@eastafricamines.com
Buckreef
The Buckreef Project is located 35 kilometers south west of Ashanti/Anglo's 18 million ounce Geita open pit gold mine in the Lake Victorian Archaean greenstone/granite terrane. The gold mineralisation at Buckreef-Rwamagaza is associated with shear zones or splays off the main shear and usually hosted in intensely altered mafic and/or ultramafic rocks. Similar to other gold deposits around the world, areas of extension and dilational zones appear to host the best zones of mineralisation.
Kitongo
The Kitongo Project includes the Kitongo PL, Mwamazengo PL, Mwamazengo South PL and Ugambilo PL which form a contiguous block of tenements 80 kilometres south of Mwanza.
Gold mineralisation has been identified in three areas with the Main Zone having a measured, indicated and inferred resource of 479,000 ounces @ 1.3 g/t Au. To the north west of the Main Zone a new discovery was made in 2001 at Isegenghe Hill where an inferred resource of 75,000 ounces @ 14.4 g/t Au has been estimated. The third occurrence is at Kitongo Hill.
Primary gold mineralisation at Kitongo has a strong structural control along a north west trending regional corridor and is hosted in a mafic volcanic sequence underlying a series of intermediate to felsic volcaniclastic units and sediments composed of cherts, BIF and phyllites. Drilling indicates the gold is associated with silicification, quartz veining and arsenopyrite within brecciated cherts and tuffs.
Gallery has focused on validating the Kitongo data base in view of the numerous local grids used in the past. The Company is following up several untested gold in soil anomalies defined by Ashanti Gold in 2000 under a joint venture with Spinifex. An IP survey is also due to commence over the main areas of mineralisation to better define the controlling structures.
John T Shaw BSc, FAusIMM, MCIM, FAICD, SME
Chairman
Hamish J Bohannan B(Eng)Sc (Hons), M(Eng)Sc, MBA,FAusIMM, CEng
Managing Director
Michael P Curnow
Non-executive Director
Craig R Munro FCPA, FAusIMM, FAICD
Non-executive Director
P Buck BA Earth Sciences, MSc (Geology)
Non-executive Director
East Africa Mines Ltd.
Plot No 103W Capri Point
Mwanza Tanzania
Postal Address:
PO BOx 1678
Mwanza Tanzania
Telephone: +255 28 250 2236 +255 28 250 2236
Fax: +255 28 250 0298
Email: eastaf@eastafricamines.com
AngloGold Ashanti Limited (NYSE: AU)
In April 2004, AngloGold Limited and Ashanti Goldfields Limited merged to form AngloGold Ashanti Limited, a global gold company with 20 operations on four continents, a substantial project pipeline and an extensive, worldwide exploration program. The new company is listed on the New York, Johannesburg, Ghanaian, London and Australian stock exchanges, as well as the Paris and Brussels bourses.
AngloGold Ashanti is committed to continuously improving the performance of current assets through cost management and increased labor productivity, as well as seeking out value-adding growth opportunities through exploration and a disciplined acquisition strategy. The company is focused on generating competitive financial returns and on rewarding shareholders with semi-annual dividends.
For more information on AngloGold Ashanti projects in Tanzania (Geita), please click here.
MR R M GODSELL (52)
BA, MA
Chief Executive Officer
MR S VENKATAKRISHNAN (VENKAT) (40)
B.Com, A.C.A (ICAI)
Finance Director
MR R CARVALHO SILVA (53)
BACC, BCORP ADMIN
Chief Operating Officer, Americas and Australia
MR R N DUFFY (42)
BCOM, MBA
Business Development
MR N F NICOLAU (46)
B Tech (Min, Eng); MBA
Chief Operating Officer - Africa
MR K H WILLIAMS (57)
BA (Hons)
Marketing Director
Head Office:
11 DIAGONAL STREET
JOHANNESBURG
SOUTH AFRICA, 2001
Phone: +27 11 637-6000 +27 11 637-6000
Fax: +27 11 637 6624
http://www.anglogold.com/default.htm
AngloGold Ashanti is committed to continuously improving the performance of current assets through cost management and increased labor productivity, as well as seeking out value-adding growth opportunities through exploration and a disciplined acquisition strategy. The company is focused on generating competitive financial returns and on rewarding shareholders with semi-annual dividends.
For more information on AngloGold Ashanti projects in Tanzania (Geita), please click here.
MR R M GODSELL (52)
BA, MA
Chief Executive Officer
MR S VENKATAKRISHNAN (VENKAT) (40)
B.Com, A.C.A (ICAI)
Finance Director
MR R CARVALHO SILVA (53)
BACC, BCORP ADMIN
Chief Operating Officer, Americas and Australia
MR R N DUFFY (42)
BCOM, MBA
Business Development
MR N F NICOLAU (46)
B Tech (Min, Eng); MBA
Chief Operating Officer - Africa
MR K H WILLIAMS (57)
BA (Hons)
Marketing Director
Head Office:
11 DIAGONAL STREET
JOHANNESBURG
SOUTH AFRICA, 2001
Phone: +27 11 637-6000 +27 11 637-6000
Fax: +27 11 637 6624
http://www.anglogold.com/default.htm
Barrick Gold Corp (TSX: ABX)
Barrick is a leading international gold mining company, with a portfolio of operating mines and development projects located in the United States, Canada, Australia, Peru, Chile, Argentina and Tanzania. In 2004, the Company’s 12 operating mines produced about 5 million ounces of gold, at a cash cost of $212 per ounce, the lowest cash cost of all senior producers. The Company increased its reserves by over 3 million ounces during 2004, with gold mineral reserves of 89 million ounces as at December 31. For 2005, the Company expects gold production to be 5.4 to 5.5 million ounces at an average total cash cost of about $225 per ounce.
The Company has successfully completed the construction of the Tulawaka, Lagunas Norte and Veladero mines in 2005, and it has three development projects at various stages in the pipeline. These new mines and projects are expected to add significant amounts of production at low cash costs to achieve the Company’s aggressive growth profile by 2007. This robust pipeline of development projects is due to the Company’s ongoing commitment to exploration, even in times of lower gold prices. Barrick is also actively exploring approximately 100 projects, in 16 countries.
Barrick has the gold mining industry’s strongest balance sheet, which positions the Company to take prompt advantage of attractive development, exploration and acquisition opportunities as they arise.
Barrick shares are traded on the Toronto, New York, London and Swiss Stock Exchanges, and the Euronext-Paris.
During 2004, Barrick re-activated an exploration-drilling program at Bulyanhulu. The objective of the program was to add more than 0.5 million ounces to the resources/reserves of the mine. In late July 2004, drilling began on the Reef 1 deep western down-plunge extension; Reef 2 down-dip extension; and Reef 2 eastern strike extension. By the end of November, 16,193 meters of diamond drilling had been completed. The most significant intersections occur in the Reef 2 horizon – east. The resources/reserves replacement program will continue in 2005. Approximately 17,000 meters of diamond drilling are planned on Reef 1, most of it to be performed from the surface. Approximately 12,000 meters of diamond drilling are planned for Reef 2, with most of it to be done from underground.
Peter Munk
Chairman - Barrick Gold Corporation
Gregory Wilkins
President and Chief Executive Officer
Peter J. Kinver
Executive Vice President and Chief Operating Officer
Jamie C. Sokalsky
Executive Vice President and Chief Financial Officer
Alexander J. Davidson
Executive Vice President, Exploration and Corporate Development
Patrick Garver
Executive Vice President and General Counsel
Head Office:
BCE Place
Canada Trust Tower
161 Bay Street, Suite 3700
P.O. Box 212
Toronto, Canada M5J 2S1
Telephone: (416) 861-9911 (416) 861-9911
Toll Free: 1-800-720-7415 1-800-720-7415
Fax: (416) 861-2492
http://www.barrick.com/
The Company has successfully completed the construction of the Tulawaka, Lagunas Norte and Veladero mines in 2005, and it has three development projects at various stages in the pipeline. These new mines and projects are expected to add significant amounts of production at low cash costs to achieve the Company’s aggressive growth profile by 2007. This robust pipeline of development projects is due to the Company’s ongoing commitment to exploration, even in times of lower gold prices. Barrick is also actively exploring approximately 100 projects, in 16 countries.
Barrick has the gold mining industry’s strongest balance sheet, which positions the Company to take prompt advantage of attractive development, exploration and acquisition opportunities as they arise.
Barrick shares are traded on the Toronto, New York, London and Swiss Stock Exchanges, and the Euronext-Paris.
During 2004, Barrick re-activated an exploration-drilling program at Bulyanhulu. The objective of the program was to add more than 0.5 million ounces to the resources/reserves of the mine. In late July 2004, drilling began on the Reef 1 deep western down-plunge extension; Reef 2 down-dip extension; and Reef 2 eastern strike extension. By the end of November, 16,193 meters of diamond drilling had been completed. The most significant intersections occur in the Reef 2 horizon – east. The resources/reserves replacement program will continue in 2005. Approximately 17,000 meters of diamond drilling are planned on Reef 1, most of it to be performed from the surface. Approximately 12,000 meters of diamond drilling are planned for Reef 2, with most of it to be done from underground.
Peter Munk
Chairman - Barrick Gold Corporation
Gregory Wilkins
President and Chief Executive Officer
Peter J. Kinver
Executive Vice President and Chief Operating Officer
Jamie C. Sokalsky
Executive Vice President and Chief Financial Officer
Alexander J. Davidson
Executive Vice President, Exploration and Corporate Development
Patrick Garver
Executive Vice President and General Counsel
Head Office:
BCE Place
Canada Trust Tower
161 Bay Street, Suite 3700
P.O. Box 212
Toronto, Canada M5J 2S1
Telephone: (416) 861-9911 (416) 861-9911
Toll Free: 1-800-720-7415 1-800-720-7415
Fax: (416) 861-2492
http://www.barrick.com/
Wednesday, December 9, 2009
Uganda Gold
Idi Amin: London stooge against Sudan
In February 1971, Gen. Idi Amin came to power in Uganda, in a military coup against President Milton Obote. British sponsorship of the semi-literate Amin, son of a sorceress, was quickly evident; Britain was one of the first countries in the world to recognize the Amin government, long before any African country. And when relations with Britain had soured after Amin expelled the Asian business community from Uganda, British intelligence operative Robert Astles remained as Amin's mentor in Uganda until the very end. Amin's tyranny, lasting until 1979, trampled Uganda's political and economic institutions, leaving the country a wreckage from which it has never recovered.
For London, as the book {Ghosts of Kampala} by George Ivan Smith reports, the primary reason for fostering the Amin power grab was Sudan. Idi Amin was willing, in fact eager, to permit Uganda to be used as a base of operations to aid the southern Sudanese in their war against Khartoum; Obote was not.
Nurtured Nilotics
Amin, now safely ensconced in Saudi Arabia, was a member of the Kakwa tribe, which straddles the borders of Uganda, Zaire, and southern Sudan. The tribe supplied Amin with his power base in the Ugandan Army.
As a young man in 1946, Amin joined the King's African Rifles, founded in 1902. The British had traditionally taken soldiers of this outfit from the grouping designated ``Nilotic peoples,'' particularly southern Sudanese. In London's recipe for colonial rule, minority groups were assigned to the enforcement roles, enhancing reliability. In 1891, contingents of southern Sudanese were recruited by Captain (later Lord) Lugard for service in Uganda on behalf of the Imperial British East Africa Company. After Britain ruled Uganda officially, large numbers of Dinka and Azande troops, then living in Egypt, were sent to Uganda. Although nominally Muslim, they had fought against the Mahdi's army in the 1880s, on the British side. In Uganda, they were called ``Nubis.''
After Amin took power, he staffed all Army command posts with ``Nubis,'' in much the same way that Yoweri Museveni's National Resistance Army is commanded by Himas, or Tutsis of southern Uganda, and the Banyarwanda, former Rwandan Tutsis. During the Sudanese civil war of 1955 to 1972, southern Sudanese had been brought directly into the Ugandan Army, making Uganda the perfect buttress for the southern Sudanese fighting Khartoum.
Obote bucks policy
In the early years of independence, Obote had invited delegations from Israel to help carry out farming projects in northern Uganda and to assist training the Army. Israel had a specific interest in Uganda: its proximity to Sudan. The Israelis were soon moving into southern Sudan to assist directly the Anyanya movement against Khartoum. In 1966, however, Obote visited Khartoum, and came to an agreement that Uganda would exert every effort to restore peace in the south. But the policy was ignored by the Defense Ministry and by Idi Amin, who was up to his eyeballs in smuggling operations in the Congo (now Zaire) and Sudan. Amin was in charge of an operation which smuggled gold and ivory out of Congo, in exchange for giving weapons to Congolese rebels, and was brought before a commission of inquiry when it was discovered that he was pocketing thousands of dollars in the process. The commission further discovered that Amin had become involved in the Congo venture through Robert Astles, who was making contacts between the Congolese rebels and the Ugandan Army. Astles's private airline company was handling the smuggling.
Amin put in to destabilize the Sudan, who was Egypt's ally
Ugandan Army officers also charged that Amin was working--against government orders--with the Sudan rebels inside Sudan. They alleged he went on a number of unauthorized flights with a foreign pilot--possibly Astles--to meet Sudanese rebels and arranged to supply them with materiel intended for the Ugandan Armed Forces. A German mercenary named Rolf Steiner was an accomplice in the operation. In his autobiography, {The Last Adventurer,} Steiner relates that he had arranged a meeting in Kampala ``under the supervision of General Idi Amin with the purpose of reaching an agreement on the leadership of the [Sudanese] liberation front.'' Out of this meeting, Steiner was given money to buy goods wholesale and ship them across Uganda to the tribal chiefs in southern Sudan. Steiner notes that ``although not all-powerful, he [Amin] was strong enough to order his army to turn a blind eye to my harmless smuggling service.''
Meanwhile, Obote refused to grant Israel landing rights for their supplies to the Anyanya. The crisis over Sudan policy hit in November 1970. Steiner was arrested by Ugandan police upon reentering Uganda from Sudan. Obote stated, in a later interview, ``The government of Uganda as such was not involved in aiding the Anyanya but was involved in finding political solutions in the Sudanese conflict. The arrest of Steiner brought out the fact that Israel was using Uganda to supply Anyanya.'' Obote was couped while he was in Nairobi, on his way back from the Singapore Commonwealth conference. As he relates, ``It is doubtful that Amin, without the urging of the Israelis, would have staged a successful coup in 1971.... Israel wanted a client regime in Uganda which they could manipulate in order to prevent Sudan from sending her troops to Egypt.... The coup succeeded beyond their wildest expectations.... The Israelis set up in Uganda a regime which pivoted in every respect to Amin, who in turn was under the strictest control of the Israelis in Kampala.... The Israelis and Anyanya were hilarious; the regime was under their control.''
When the Sudanese civil war was halted in 1972, Israel quickly lost interest in Amin. Enter Libya. In February 1972, Amin visited Libya, striking a pact with its President Muammar Qaddafi. In March 1972, all Israeli personnel were told to leave Uganda. In August 1972, all Asians were expelled, whereupon Britain withdrew its support for Amin. In September 1972, Libya proffered full military assistance to Uganda and sent 500 technicians to Kampala. By 1974, the intelligence services in Uganda were being run by Libya, and Libya was giving Amin Soviet MiG fighters. Libya even supplied troops to defend Amin when the Tanzanian Armed Forces invaded Uganda to drive Amin out. Overseeing the entire venture, from beginning to end in 1979, was London's Astles.
The Israelis were soon moving into southern Sudan to assist directly the Anyanya movement against Khartoum. In 1966, however, Obote visited Khartoum, and came to an agreement that Uganda would exert every effort to restore peace in the south. But the policy was ignored by the Defense Ministry and by Idi Amin, who was up to his eyeballs in smuggling operations in the Congo (now Zaire) and Sudan. Amin was in charge of an operation which smuggled gold and ivory out of Congo, in exchange for giving weapons to Congolese rebels, and was brought before a commission of inquiry when it was discovered that he was pocketing thousands of dollars in the process. The commission further discovered that Amin had become involved in the Congo venture through Robert Astles, who was making contacts between the Congolese rebels and the Ugandan Army. Astles's private airline company was handling the smuggling.
Congo and Uganda: a rush of gold
In November the UN Security Council adopted sanctions, which include freezing assets and travel restrictions, against anyone breaking the arms embargo on the Democratic Republic of Congo. The east of the country is rife with smuggling, especially in gold. Regional conflict that left 3 million dead between 1998 and 2003 has exhausted the country, and general elections that were due this year have been pushed back to June 2006.
By Stefano Liberti
MONGBWALU, a desolate village in Ituri district in the northeastern region of the Democratic Republic of Congo (DRC), looks like something out of an old western. A single dusty road runs through it, with cafes on either side that resemble saloons, a squalid hotel with a broken-down sign, and groups of youths observing passersby as though they were expecting a shoot-out any minute. The comparison with the Wild West isn’t fanciful, for here, as in the towns that mushroomed in the United States during the gold rush, everything revolves around gold.
Ituri is right in the middle of one of the most important gold deposits on earth (1). Several hundred kilograms are extracted every month from the primitive mines around Mongbwalu. The gold is taken illegally to neighbouring Uganda, from where it is exported to Europe, usually Switzerland. Because of the enormous profits generated, the gold is much coveted - and the cause of the bloody conflict that has plagued the DRC and this region since 1998 (2).
The subsoil of this huge African country - formerly Zaire - is so gorged with minerals that it’s sometimes called a geological outrage. From 1982, when the dictator Mobutu Sese Seko (in power from 1965 to 1997) liberalised gold mining in parts of the country, Mongbwalu became a sort of tropical Klondike. Thousands of small-scale miners threw themselves into a business that continued through the worst moments of the war. The miners still leave the village every day at dawn in battered old 4x4s and follow the earthen tracks to the mines. There they split into teams and start digging. The open pit mine resembles an enormous hive in which thousands of people busy themselves inside mud combs. Some men stand waist deep in water, digging feverishly and putting the earth in plastic crates that are passed along by men pressed against the sides of the embankment.
Each team works for itself. The soaked earth and stones are placed on a sieve above a pool of water. The first stage is to look for gold dust. Then the more promising stones are broken with clubs in the hope of finding veins of gold. “You have to know where to dig,” says Etienne, who spent 10 months in the hills of Mongbwalu. Around him a group of young men are examining stone chips in a sieve, hoping to find a few specks of gold. “No luck today,” says Etienne, “but I’m sure it’ll get better later. If we find a good chunk, we’ll manage to get $5 each.”
At the top of the embankment you can make out the ruins of a building. It is all that is left of the “factory”, the public enterprise set up for gold extraction in the Kilo-Moto region to which Mongbwalu is the gateway. Gold mining was in full swing during Mobutu’s time, when Ituri was under the control of the Kinshasa government. In those days the profits went straight into Mobutu’s pockets, enabling him to amass a fortune in foreign banks. The battle to gain control of this rich piece of land was triggered immediately after his fall in 1997.
Africa’s largest gold seam
Kilo-Moto is one of the most unstable areas in the Great Lakes region. Because of its extraordinary potential - it has the largest gold seam on the continent - it has been coveted by the main players of what has been called “the first African world war” (which pitted government forces supported by Angola, Namibia and Zimbabwe against rebels backed by Uganda and Rwanda).
In 1998, when the country was invaded by Rwanda and Uganda, the region was occupied by the Kampala forces, which flew the gold straight back to Uganda. After the 2003 Sun City agreement in South Africa, foreign troops were obliged to leave the country. The area then became the scene of fighting between the Union of Patriotic Congolese (UPC), supported by Rwanda, and the Front for National Integration (FNI), backed by Uganda. Sixty thousand people are thought to have died in these conflicts, despite timid intervention by Monuc, the UN observer mission in the DRC, set up in 1999. After falling to the UPC, the region was taken back by the FNI.
The militiamen stand accused, among other things, of subjecting workers to forced labour. According to a report by Human Rights Watch (HRW), the FNI takes a percentage of the mined gold and extracts one dollar a day from the workers in exchange for allowing them to work the mines (3). The soldiers hotly deny this. “It’s peace, our men are unarmed. All the men here work for themselves and for the good of the country,” says Iribi Pitchou Kasamba.
This small, stocky man became head of the front after its leader, Floribert Ndjabu, was arrested in Kinshasa for killing nine Bangladeshi Monuc troops in Ituri in February. Flanked by his “lieutenants”, Kasamba inspires fear and respect in equal measure in the zone around the mine. He describes the accusations by HRW as “total rubbish”, adding that “the only money we’ve received is the $8,000 that AngloGold Ashanti paid us quite voluntarily.”
This major South African company obtained a 10,000sq km mining concession around Mongbwalu and has recently been accused of bribing the rebel forces. Since 2003 the UN embargo prohibits any support to armed rebels in the DRC (4). The company claims that it was obliged to pay to guarantee the safety of its employees. But the scandal has tarnished its image - particularly since it boasts an ethical policy inspired by a commitment to “corporate social responsibility” (5). In any case AngloGold Ashanti has not yet started to mine gold in its concession.
Shovels and sieves
Mining continues the primitive way, with shovels and sieves. Near the site a crowd of men equipped with scales gets ready to start buying. The luckier gold-washers crowd around them clutching handfuls of their precious find. This is the start of the transaction. The gold dust in placed on a coal heater and mixed with nitric acid to separate any impurities. The remaining gold is then weighed and sold. The price is about $10 a gram. The rate depends on the market and increases the further you get from the mining area. In Bunia, Ituri’s main town, gold fetches $11.5 a gram. The small-time buyers at the source, as well as the dozens of others who gather in Mongbwalu’s main street, are the middlemen for traders in Bunia and Butembo in the neighbouring province of North Kivu.
Numerous small jobs are grafted on to the business of the mine itself. Women sell fruit, potatoes and rice; young motorcyclists ferry people to and from the mining sites and the centre of Mongbwalu. There is also a motley crew of musicians who seem more comfortable with guns than guitars and seem to monitor the comings and goings. The mere presence of Kasamba is enough to deter anybody from speaking.
Only later, and anonymously, does someone from Mongbwalu agree to give us his view: “In the factory and the other mines near the village, the FNI’s control is limited. Since the Monuc forces arrived the militia have had to be more discreet. But you only have to go a few kilometres further out to see them back in their old ways, forcing people to work for them, harassing them and confiscating gold.”
The 140 Pakistani soldiers from Monuc (6) who arrived in April, and who are in charge of disarming the militia, are even more discreet than the rebels. They are confined to their camp outside the village and their actions are limited to a few patrols. One of the leaders of the contingent admitted that he didn’t really know what went on in the mines.
At the Bunia headquarters, this state of affairs is confirmed. “In theory Monuc could supervise the gold traffic,” says Karin Volkner, the mission’s political affairs officer, “but in reality we don’t have the means to carry out that kind of control. There’s only one military contingent in Mongbwalu. We’re thinking of sending a group of civilians but so far we’ve only carried out exploratory missions.” The Monuc forces are occasionally called in for heavy operations and to support the elections that should end to the transition period (7), but they scarcely bother with the gold smuggling that goes on under their very noses.
In broad daylight
In Bunia gold dust is sold in broad daylight. In this village, ravaged by war and poverty where thousands of refugees are crowded into a camp by the airport, the gold trade is the only commercial activity possible. Almost everyone seems to be at it, in one or other of the two markets.
According to the new DRC mining code established in 2002, government authorisation is required for wholesale gold purchasing (8) but nobody bothers about that in a region where the state is totally absent. “Ituri suffers from government failure,” says Volkner. “The Kinshasa government is very far away and has never bothered much about the people to the east. On top of that, some ministers are directly involved in raw materials trafficking and have no interest in establishing peace in the region.”
The entire trade rests on a well-organised network of small-scale miners, buyers and intermediaries. The town’s traders sell the gold to a handful of middlemen, who smuggle it to Kampala. They use a variety of vehicles (trucks, jeeps, motorbikes), or canoes to cross Lake Albert, making the most of a total absence of controls at the Congolese border. As the process advances, the number of people involved is reduced. In Kampala only three companies buy the gold; all are managed by Indian entrepreneurs. The largest company, Uganda Commercial Impex Ltd (UCI) (9), has its headquarters in the suburb of Kamutckia.
According to Jamnadas Vasanji Lodhia, the owner of UCI: “We buy approximately 350kg of gold for a total of $5m. Our suppliers are always the same six or seven people, all Congolese from Bunia and Butembo.” The best known of these is Kambala Kisoni, owner of the Congocom Trading House. Kisoni also owns a small Antonov plane that flies between Mongbwalu and Butembo almost daily under the name of Butembo Airlines. According to UN experts, Kisoni has breached the arms embargo many times and has transported arms and FNI personnel to Mongbwalu (10).
When we reached Kisoni by telephone, he denied the accusations. “They consider us accomplices or rebels but, in fact, we’re hostage to the FNI people, who behave as though they run the area. They charge us $60 every time we land at Mongbwalu. We’d like the Congolese army to regain control of the region and establish some order.”
Kisoni did not deny exporting gold without authorisation from the mining ministry in Kinshasa. “It’s become dangerous to export with a licence,” he explained. “Given the level of corruption in the government, we’d risk losing everything. We used to have a licence but our gold cargo was stolen three times. And we know that the thieves were connected to the government.” Kisoni added that Congocom is simply an unofficial bank. “Gold is the currency here. With our clients’ gold we buy merchandise, which they sell in Congo. The Kampala buyers like UCI open lines of credit for the big companies that supply our clients with the products. We restrict ourselves to working as middlemen between the Ugandan companies and the traders in eastern Congo.”
The gold bought by UCI is melted down in the company’s Kampala headquarters. The small ingots are then sent every month to Metalor Technologies SA in Switzerland, a leading European dealer in precious metals. But since June the market has apparently ground to a halt. Following the publication of the HRW report, the Swiss company decided to stop gold imports. The UCI boss, Lodhia, was furious. “This trade has carried on for a century,” he said. “I don’t understand why they are making such a fuss. They accuse us of stealing wealth from Congo, but our suppliers are Congolese. With the money they earn from us they buy goods to sell in their country where there is nothing. They don’t buy arms, but sugar, coffee, blankets and clothes. What’s the point of buying arms anyway? Congo is full of them. That’s what earns the least money.”
Offshore bank accounts
Lodhia said he knew nothing about the supposed links between his suppliers and the armed rebels in Ituri. He confirmed visiting Bunia and Butembo, but denied ever having been to Mongbwalu. “I’ve occasionally been to see clients in the east of the country,” he admits, “but I’ve never visited the mines.” He showed us the company accounts that record transactions with Congolese clients worth millions of dollars. Most of the money is stored in offshore bank accounts in places like Mauritius or Hong Kong. “Our clients don’t trust local banks,” he explained, “so we pay the money into the accounts they choose. Which is totally legal.”
Indeed, the trade is legal. The Ugandan government does not require certificates of origin. It merely levies a 0.5% duty on gold exports and an annual licence fee of $1,200. In theory imported metals should be declared at the border, but it is so easy to cross the Congo-Uganda border that nobody bothers with customs declarations.
The numbers reveal the extent of this vast trade. In 2003 local gold production was worth $23,000. Officially imported gold totalled $2,000 while exported gold reached $45bn. The same data, supplied by the ministry for energy and development in Kampala, reveals that Uganda’s gold production totalled 40kg for that year, yet exports were more than four tonnes. In 2002 official production stood at 2.6kg with exports of 7.6 tonnes (11).
As a result of this vast legalised smuggling operation, gold is the second biggest Ugandan export after coffee. “That’s no secret,” said Lodhia. “Everybody knows that the gold in Kampala comes from Congo. In any case the government is virtually non-existent in former Zaire, especially in the east, and there are no controls. It’s been like that since the Mobutu era.”
Uganda has been the hub for Congolese gold since 1994, when the Kampala government decided to withdraw the central bank’s monopoly in buying precious metals, to scrap high export duties (of between 3% and 5%), and to make the regulations on trading companies more flexible. Previously, gold from Ituri transited through Kenya where the trade had already been liberalised. Lodhia admits to having switched from Nairobi to Kampala. “From a logistical point of view, it’s much easier to work out of Uganda,” explained the Indian entrepreneur. “The country is nearer to the DRC and security is excellent.”
The value of the gold increases as it travels from the Congolese towns to the Ugandan capital. UCI buys at $13.5 per gram. The selling price abroad depends on fluctuations on the international markets. “But we work on the basis of a profit margin of 0.5%,” explained Lodhia. “Gold mining is a living for thousands of people in eastern Congo. Those Human Rights Watch militants are lobbying intensively to stop it, but their ideological thinking will end up hurting the very people they think they’re defending. I’m losing money myself, but I’m not going to starve. If the Swiss stop buying and I don’t find other outlets, then sooner or later I’ll have to stop buying.”
There are thousands of people involved in gold smuggling, from the miners in Mongbwalu to the big traders in Kampala and the middlemen in Bunia and Butembo. Although there is no doubt that gold mining has supported - and continues to support - the rebels in the east of the country, it would be difficult to prevent this through embargoes or other means. UN experts believe that, given the size of the country, a total export ban on natural resources would be an extremely costly measure and hard to enforce (12). For them the ideal solution would be to set up a “traceability” process that would prevent smuggling to Uganda. But a system like the Kimberley process for diamonds (13) has not yet been devised for precious metals.
According to Enrico Carisch, a UN finance expert: “The only way to stop the warlords from making money would be to put pressure on the region’s governments to end this regime of impunity. The Ugandans, in particular, should normalise bilateral trade with Congo. But to do that, the Kinshasa government must regain control over the east of the country with the help of the international community.” In a region where the state is notable for its absence and gold is the only source of revenue for the majority of people, it is hard to imagine how the gold mining business could be changed at one stroke - particularly with the strong international demand for gold.
Monday, December 7, 2009
DRC GOLD FUNDS DEADLY WAR
The top-rated U.S. news program "60 Minutes" says gold and other minerals mined in the DRC pay for weapons used in "The deadliest war since World War II," killing five million people so far.
A report aired nationally on the television news magazine "60 Minutes" Sunday by CBS News called for the monitoring of conflict gold in the Democratic Republic of Congo, based upon the already established Kimberley Process for conflict or blood diamonds.
In a recently released statement, the Jewelers of American organization warned the piece would "'attempt to call the integrity of the entire gold jewelry supply into question, ‘portraying the jewelry industry as having failed to act responsibly in the face of a well-documented, ongoing crisis."
Interestingly, the report by "60 Minutes" correspondent Scott Pelley, which was actually compiled several months ago, was aired at this time to coincide with the recent records set in gold prices. However, "60 Minutes" did not mention that the airing of the story also coincides with a battle now underway in the Canadian Parliament over a bill that would allow Canadian officials to monitor and report on alleged human rights violations by Canadian mining companies internationally.
"Gold and other minerals are funding the deadliest war since World War II," Pelley said. "More than five million people have died in the Democratic Republic of Congo."
"In the heart of central Africa, '60 Minutes' found a campaign of rape and murder being funded largely by gold that is exported to the world," he added.
Joining Pelley on a visit to an artisanal gold mine in Eastern Congo was Anneke Van Woudenberg of Human Rights Watch, who authored the 2005 report, "The Curse of Gold". At the time the document was issued, it accused AngloGold Ashanti of allegedly providing assistance to DRC warlords, a charge denied by AngloGold officials. The company did admit it yielded to militia extortion, however.
The report also revealed how Metalor bought the DRC gold from, Uganda. The company responded it had believed the gold was of legal origin, and suspended gold purchases from Uganda.
In his report, Pelley noted, "The people are destitute. But the Congo is the Saudi Arabia of minerals. In addition to gold, the earth is loaded with metals such as tin, copper, and something called coltan that is essential to the circuits in computer and cell phones."
"60 Minutes" called DRC mining "an inexhaustible wealth of misery."
In his report, Pelley said the Congo gold is funneled to nearby Uganda, eventually going to refineries in Dubai.
"Jewelers know about the tragedy in the Congo, but it has never been standard industry practice to trace gold to its source," Pelley asserted. "Jewelers buy gold from middlemen. They don't ask where it comes from."
The Jewelers of America (JA) recently asked its members "to voluntarily ask their suppliers to affirm to them in writing their commitment to the responsible sourcing of gold."
"Jewelers of America members should also assert their belief that even one ounce of gold from a conflict source is one ounce too many," the organization recommended.
Author: Dorothy Kosich
Posted: Monday , 30 Nov 2009
Friday, December 4, 2009
The Wittelbach diamond
The Wittelbach diamond, a rare 35.56 carat blue diamond
The Wittelbach diamond next to a first class stamp
Becky Markley holds the Wittelbach diamond a rare 35.56 carat blue diamond, next to a British first class stamp, at Christie's auction house in London, Friday, Dec. 5, 2008. The rare blue diamond which was handed down through generations of German royalty has sold for a record-breaking 16.4 million pounds ($24.3 million) at auction Wednesday, Dec. 10, 2008, Christie's said. The Wittelsbach Diamond, a 35.56 carat cushion-shaped gem, has often had its color and clarity compared to the famed Hope Diamond, now on display at the Smithsonian Institution in Washington. The rare gem was snapped up by billionaire diamond-dealer Laurence Graff for about 16.4 million pounds ($24.3 million), including buyer's premium, Christie's spokeswoman Alexandra Kindermann said.
Becky Markley holds the Wittelbach diamond a rare 35.56 carat blue diamond
Since the first diamonds were discovered in the Gauteng province of Transvaal in South Africa over a century ago, the Cullinan mine has yielded some of the most spectacular diamonds ever to be unearthed. Last year, a 26,58 ct blue diamond rough was uncovered there, which has now been transformed into a cushion-shaped 7,03 ct internally flawless fancy vivid blue gem, the highest colour grading. Published in Jewellery, Geneva May 2009
Cutting a Rough Stone
Cutting a raw stone into a faceted and polished gemstone is a multi-step process. Each step is critical to the final outcome. The steps are:
Marking
Cleaving
Sawing
Girdling (Bruting)
Faceting (Cross Working)
Brillianteering
Marking: A rough stone is marked prior to cleaving or sawing to determine the direction of the grain or "cleavage", eliminate waste, and bypass inclusions or imperfections. The natural shape of the rough stone will also be a major factor in deciding how to cut the stone.
Cleaving: Cleaving refers to splitting a stone along its grain by striking it. A rough stone is cleaved if there are conspicuous defects and/or inclusions which would prevent it from being made into a single gemstone.
Sawing: The rough stone is cut to a shape that approximates the shape of the finished cut stone but without the facets.
Girdling: The rough is placed in a chuck on a lathe. While the rough stone rotates on the lathe, a second diamond mounted on a dop is pressed against it, rounding the rough diamond into a conical shape. This step is also referred to as rounding or bruting.
Faceting: The cutting and polishing of each facet is accomplished by attaching the stone to a dop stick and pressing it against a revolving lap (see "Facetron" below). During this faceting stage the angles of each facet must be cut in order to maintain symmetry and produce maximum brilliance.
Brillianteering: If the primary Faceting or "Cross-Working" is done by a separate craftsman, the final 40 facets of a round brilliant cut diamond's 58 facets will be cut by a Brillianteer.
How to Become a Diamond Dealer
Diamond dealers buy and sell diamonds for private clients or for a company. They are experts in evaluating diamonds and in locating the best diamonds at the lowest prices. Many diamond dealers work for retailers, wholesalers or diamond cutters. Diamond dealers do not own the diamonds they sell. Instead they are salespeople selling a valuable product. To become a well-regarded diamond dealer it is best to be trained by industry leaders and to acquire the credentials that label you a professional diamond dealer.
Step 1Take courses at the American Gem Society. The AGS is a not-for-profit trade association for those in the fine jewelry business. One course to take is Graduate Sales Associate, a home study course that teaches the student about diamonds, the industry and how to sell. According to the website, "Upon successful completion of a proctored final exam, the associate is awarded a Graduate Sales Associate Certificate from the Jewelers Education Foundation of the American Gem Society." Another course to consider is the Registered Jeweler. This course teaches you about diamonds, colored gemstone like rubies and sapphires and the ethical standards of the diamond industry.
Step 2Study to become a Graduate Gemologist, or GG. This title is offered by the Gemological Institute of America, a trade association. This GG designation is just one of several training programs the institute offers. While there are no requirements to become a diamond dealer, getting this credential will greatly improve your chances of getting a job as a diamond dealer. This course can be taken online or in a 26-week classroom program.
Step 3Continue your education. By increasing your knowledge and acquiring more recognized credentials you can secure a good position as a diamond dealer. You can become a Certified Gemologist Appraiser or CGA. This course of study is offered by the American Gem Society. The AGS website writes, "This title is the most highly regarded in the industry. Earning the CGA title requires more advanced training and experience in determining the value of gemstones and jewelry." This credential has other requirements to fulfill. A person has to be re-certified annually to maintain the CGA credential. Also you have to work in an AGS member firm.
Step 4Apply for sales jobs in the diamond industry. Once you have trained and gotten your credentials, you can start looking for a job. With a resume that details your training and experience you can start to look for jobs by contacting the member firms of the American Gem Society. These are all reputable jewelers, retail stores, wholesale companies, diamond cutters and diamond brokers. The AGS has an online directory of firms you can contact.
Step 5Use the career services at the Gemological Institute of America. The GIA provides graduates of its training programs career services to help them get jobs in the diamond industry. This is a good option if you have taken the Graduate Gemologist course.
Step 6Work in jewelry departments. If you don't have the credentials listed above, the best option is to get a sales job in the jewelry department of a department store. While working at this job you can take online or home study courses at the American Gem Society or the Gemological Institute.
By Sabrina Ashley
References
Gemological Institute of America
American Gem Society
Prices of Diamonds Graded by 3 Different Laboratories
Abstract
An analysis of trading prices showed that the trade adjusts prices based on expected strictness of diamond grading reports.
To confirm or deny the trades expectation of grading strictness, the authors conducted a small 17 diamond independent survey of GIA, AGS and EGL USA lab grading. The diamonds were anonymously submitted from three different sources.
In half the cases AGS clarity grading was one grade stricter than GIA. In two thirds of cases EGL USA color grading was one grade softer but clarity grading in a third of cases was stricter than GIA. Industry opinions were confirmed and by large each lab graded consistently to its own apparent standard, considering the high degree of human subjectivity involved.
In conclusion: The study confirmed that business to business Internet listings effectively priced diamonds graded by these laboratories
1. Introduction
Diamond prices are dramatically dependant on the 4C's (carat, color, clarity and cut); a difference of only one color or one clarity grade can result in price variations of 3% to more than 25%.
For many years, buyers and sellers determined diamond grades by themselves. But in the 1953 the Gemological Institute of America (GIA[4]) established a grading system for color and clarity and began using this system in its independent diamond grading laboratory. Today there are many large and small gemological labs world-wide that offer third party diamond grading services. Trade insiders believe that some labs are stricter and more consistent, while other labs are softer (i.e. give higher grades) or may be less consistent. Consequently it is believed the diamond trade adjusts diamond prices based on the lab that issued grading reports.
The only published source of price comparison the authors are aware of, between diamonds graded by different labs, is listed on Polishedprices.com:
Certificate Calculation factors according to Polishedprices.com
Certificate Factor
AGS 1.028
CGL 1.000
GIA 1.000
HRD 0.981
IGI 0.944
EGL 0.935
NONE 0.935
Today’s consumers are learning more about diamonds and pricing. Websites like Pricescope.com and others have contributed to the public's greater knowledge. Many have learned that diamonds graded by GIA-GTL or AGSL[5] are priced at premiums compared to diamonds with reports from other labs. The current study compares lab strictness but importantly, for the first time that the authors are aware of, this survey includes a pricing and value comparison.
The prices of a significant quantity of diamonds, more than 50,000, are publicly listed on-line and GIA, EGL USA[6], and AGS graded diamonds were represented in large enough quantities to be included in this study.
The reason for a grading lab to give softer grades is to get more business from diamond manufacturers, retailers or wholesalers who want to increase their profits by selling diamonds given higher grades at higher prices. However, EGL USA has claimed recently to have been grading stricter.
This survey is the first in a decade[7] that the authors are aware of, was not intended to prove that any lab is better than another. Diamond grading is a subjective art. The consumers should be aware that a grading report is that labs opinion, and not a fact. This was illustrated by the fact that none of the 17 stones were given the same grade for both color and clarity by all 3 labs. One of Pricescope's main intentions with this survey was to compare the relative trading values of diamonds graded by various labs.
2. Method of Survey
This survey was funded by Pricescope, including the expenses of two additional grading reports and shipping of the diamonds. None of the surveyed labs were made aware of the survey.
Three labs were surveyed:
GIA-GTL.
AGSL.
EGL USA.
These three labs were chosen because there are reasonable sized commercial data bases of pricing information to enable cost comparisons.
Pricescope approached three independent diamond vendors: DirtCheapDiamonds.com, EngagementRingsDirect.com and Whiteflash.com to provide diamonds from their inventories. These stones had already been graded by either GIA-GTL or AGSL and they were then sent to the two other grading laboratories. The vendors were aware of the purpose of this experiment and the need for secrecy. They knew that other vendors would be participating in this survey, but they were not informed of the identity of the other vendors.
In total 17 round brilliant cut diamonds were selected for the survey, but one was inadvertently sent to GIA-GTL twice (and received different clarity grades). They ranged from 0.6 -1.25 carat, E – J color and VVS2 – SI2 clarity ranges. The sizes and qualities were chosen to represent frequently traded range of diamonds. The vendors were asked not to deliberately select stones that they considered to be border line examples or stones that in their opinion had been "missgraded". See Appendixes I - V for all diamonds' details.
Each of the diamond vendors independently submitted their already lab graded diamonds to two additional grading labs. Namely:
DirtCheapDiamonds.com selected 6 diamonds (5 with AGSL and 1 with GIA-GTL reports) and submitted them to GIA and EGL USA
EngagementRingsDirect.com selected 4 diamonds with GIA-GTL reports and submitted them to AGSL and EGL USA
Whiteflash.com selected 7 diamonds with GIA-GTL reports and submitted them to AGSL and EGL USA.
All diamonds and all 3 grading reports were then shipped to David Atlas, GG, NGJA, ASG Accredited Gem Appraisers, Philadelphia, PA for additional professional evaluation and to review the grading results.
3. Summary of the results
Diamond grading is not a science; it is a subjective skill. As mentioned, none of the 17 diamonds in this survey was given the same grade for color and clarity by all three laboratories. Due to the subjectivity of human color and clarity grading, it is virtually impossible to say whether one or another grade is absolutely accurate. Instead we decided to consider whether two of the labs grades were stricter or softer compared to GIA-GTL grades. We made this decision because GIA-GTL is the largest lab and is considered as a market leader.
To underline the subjectivity of diamond grading it is worth noting that stone #10 already had a 6 month old GIA-GTL report, but was inadvertently resubmitted to GIA-GTL (it was to have been sent to for an AGSL report, which explains its absence). The color was given the same grade, but the clarity on the GIA-GTL report was VS1 on the earlier October 2003 report and VS2 on the April 2004 report. In discussions with the GIA about this particular stone they noted that in their private records on both occasions that it was a border line VS1 / VS2. The authors chose to include the stone at its softer GIA-GTL grading.
3.1. Relative comparison of the Clarity and Color grades
Table 1.a. Carat, color and clarity of the diamonds used in the survey
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No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Carat 0.74 0.78 1.08 1.11 0.62 0.60 0.62 0.62 0.71 0.70 0.79 0.71 0.75 1.13 1.02 1.23 0.70
Color
GIA F F H G I I G H H H E E H J E G H
AGS F F G G I H G H H n/a E E H I F G H
EGL E E G F H H F G G G E E G I F G H
Clarity
GIA SI1 VS2 SI2 SI2 VS1 VVS2 VS1 VS2 SI2 VS1 SI1 SI1 SI1 SI2 VVS2 VS1 VS2
AGS SI2 VS2 SI2 SI2 VS2 VVS2 VS2 SI1 SI2 n/a SI2 SI2 SI1 SI1 VS1 VS2 SI1
EGL SI1 VS2 SI2 SI2 VS1 VS1 VS2 VS2 SI2 VS2 SI1 SI2 SI1 SI1 VVS2 VS2 SI1
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Table 1.b. AGSL and EGL USA Grading Compared to GIA-GTL
--------------------------------------------------------------------------------
AGSL (out of 16) EGL USA (out of 17)
Clarity Stricter 9 (56%) 6 (35%)
Same 6 (38%) 10 (59%)
Softer 1 (6%) 1 (6%)
Color Stricter 1 (6%) 1 (6%)
Same 12 (75%) 4 (24%)
Softer 3 (19%) 12 (71%)
--------------------------------------------------------------------------------
Figure 1. Difference in Clarity Grades Compared to GIA-GTL. Below the line corresponds to softer grading (higher grade) and above the line is stricter grading (lower grade)
Figure 2. Difference in Color Grade Compared to GIA-GTL. Below the line correspond to softer grading (higher grade) and above the line is stricter grading (lower grade).
3.2. Cut Grades
Comparison of the contentious issue of cut grades was not possible, since GIA-GTL reports do not rate a diamonds proportion based cut quality. Under the heading ‘Proportions’ are depth percentage, which is the depth divided by average diameter and multiplied by 100, table size as a percentage of the average diameter, the girdle in descriptive wording and finally culet size description. A sub heading ‘Finish’ lists polish and symmetry. Both other labs give crown and pavilion information; AGSL gives both angle and percentage data and EGL USA gives crown height and depth percentages. GIA-GTL noted under comments any diamond with a crown angle greater than 35° or less than 30°.
The information provided by AGSL and EGL USA enables proportion grades to be checked with cut grading systems provided by the authors on www.pricescope.com/cutadviser.asp and www.gemappraisers.com.
3.2.1 Proportion Grading
AGSL has an optional report system for round diamonds that grades a diamonds cut against a comparatively tight set of proportions. The top grade is ‘zero’ and the worst grade is 10. AGS 0 has become synonymous with the term ‘Ideal Cut’ in North America (stones # 5 to # 10).
EGL USA produce optional reports with proportion based cut grade results (e.g. stone # 7 is called EGL IDEAL PLUS).
Researchers in the field of cut studies debate the use of parameter ranges for cut grading round diamonds. It would be fair to say that all three labs (and most others) are un-satisfied with the parametric based approach. GIA[1] and AGS[2] now recognize that diamonds with the steepest crown and deepest pavilion, within a cut grade category, are not as attractive as many diamonds of lower grades, with combinations of shallow crown and deep pavilion, or steep crown and shallow pavilion. The same is true for shallowest crown and pavilion combinations. The GIA is conducting a costly decade long cut study to establish a cut grading system. This has taken longer than planned. At the 2004 Basel GemFest GIA released information indicating that its new cut grade system will account for the above mentioned relationship between crown and pavilion angles.
3.2.2 Symmetry and Polish
Symmetry and polish were graded for all stones by all three labs. The table below describes the terminology used by each lab.
GIA-GTL AGSL EGL USA
Excellent Ideal Excellent
Very Good Very Good Very Good
Good Good Good
Fair Fair Fair
Poor Poor Poor
Generally the Polish and Symmetry grades of GIA-GTL and AGSL coincide with each other for Excellent/Ideal and Very Good and Good grades. All three labs gave similar grades for diamonds rated as Good. However EGL USA reported mostly Good or Very Good Polish and Symmetry for diamonds that were graded Excellent / Ideal by GIA-GTL and AGSL respectively
3.3. Clarity Plots and Comments
A comparison of the diamonds and the plots from all three labs showed that AGSL report plots had a consistency and greater degree of detail than the GIA-GTL reports. The plots of the EGL USA documents were close to the quality of AGSL and contained adequate detail. See Appendix V.
GIA-GTL made the most use of comments (12 clarity or surface feature comment on a total of 18 reports), followed by AGSL (10 such comments on 16 reports), however EGL USA made none. GIA-GTL’s stated practice is to plot only the marks that set the clarity grade, with others often being referred to in the comments section; this policy was reflected in the absence of a few inclusions which were reported in the comments section. GIA-GTL plotting was also somewhat less intensely drawn.
How to Grade Diamonds
There are few tasks more challenging than grading gemstones, diamonds in particular. The diamond industry is a close-knit society of dealers and appraisers. Between the two groups, a diamond's worth is almost always determined by a scale of quality and rarity. Following the steps below will give a diamond hunter a good start on the road to grading a diamond.
Step 1Understand what a carat is. A carat is a simple scale given to diamonds that assesses its weight. Typically, a 1.00-carat diamond weighs in at 0.2 grams. The more carats a diamond possesses, the higher in value it becomes.
Step 2Inspect the cut of the diamond. A diamond's cut is the way a diamond cutter has actually turned a rough stone into a brilliant diamond. A brilliantly cut diamond will sparkle brightly and transfer colors from one angled cut to the next to create a fire-like appearance.
Step 3Identify the color of a diamond. A diamond's color is crucial to its value. Colorless stones are very rare and are graded in the "D" category. Other categories include diamonds in varying colors such as green, blue and yellow. These are called fancies and are extremely rare and expensive, with red being the most prized.
Step 4Search for inclusions in the diamond. Inclusions are often referred to as nature's fingerprints. These are deposits in the stone that affect its ability to transfer color from one facet to another. The more inclusions a diamond has, the lower it is graded.
Tips & Warnings
Take a magnifying glass to inspect each stone more closely. The jeweler may be able to provide one in store.Pass a light through the diamond while grading to better identify inclusions.Grade diamonds according
How to Determine The Purity of Gold
It is always good to have some knowledge of purity of gold if you are a gold buyer or seller. In this article, you will be told how to determine the purity of gold. After reading this article, you will be able to determine whether gold is pure or not. Just follow these easy steps and you will get the result. You will need a touchstone, testing solution and gold test needles to do it. So here we go!
Step 1 Check for identification marks:
Look at the gold item for some identification marks like 10k, 14k, 18k and 24k. Test needle and test solution will vary according to carats. If you identify carats, you will have the best results.
Step 2 Touchstone and test needle:
Pick up the test needle and touchstone. I you want to test an 18k gold item, you will choose 18k test needle too.
Step 3 Scratch the touchstone with test needle:
It should be a firm scratch. It should not be across the entire surface as you will need to buy another touchstone if it is. Just a firm scratch it should be.
Step 4 Scratch the touchstone with gold item:
Make another scratch next to that one you made before with needle. But this time you will make the scratch with to gold item you want to test. So you have two scratches located side-by-side on the surface of touchstone.
Step 5 Acid solution:
Use the acid solution of 18k if your test needle is of 18k. Use that of 24k for a 24k test needle. Drop 1-2 drops of the solution on the scratches you made before.
Step 6 Analysis of result:
Finally, analyze you results. The color of the two scratches will be the same if your gold is pure. If the colors do not match, then repeat the process with different needles and solutions.
By mbastudent
Thursday, December 3, 2009
Seven mines in five years expected to open in Greenland
Greenland will open seven mines in the next five years, boosting the traditional hunting and fishing sectors, which are threatened by global warming, a senior minister said.
Aleqa Hammond, minister of finance and foreign affairs, told Reuters that the new projects include a gold mine, diamonds, zinc and lead, and an aluminum smelter,
"The zinc and lead (mines) will be opening in October," she said. Construction of the aluminum smelter should be complete by 2014.
Greenland is a self-governing province of Denmark. It has been mining gold and olivine since 2005 and 2006, respectively.
Eight of the world's largest oil companies are already exploring the country's western coast. "We know there is oil in Greenland. You can touch it coming out of the mountain," Hammond said, noting that production dates would depend on the explorers' success.
Boosting the oil and minerals sector would mean increased pollution risks as well as the possible inundation by foreigners of Greenland's 56,000 population.
Greenland also needs to adapt to the loss of livelihoods caused by rising sea temperatures and melting ice, she said. "Our whales are migrating different, our birds are migrating different, the salmon are in a different place - our hunters are having difficulty," she said. "We can no longer count on quotas for our fisheries. It is important for us to adapt," she said. Melting ice means that polar bears - who need the ice to hunt seals - must travel farther to look for food, traveling all over Greenland. To reduce their reliance on oil, Greenland is also seeking to boost its hydroenergy, Hammond said. Following on from the recent diamondiferous finds in the North Western Territories, emphasis has moved to the southern parts of Greenland, where Archaean craton is known to exist. Nearly all of the world’s diamondiferous pipes are located on or close to the edges of Archaean cratons. Consequently, most of the craton has been covered by licenses exploring specifically for diamonds.
Diamond exploration in Greenland is on the rise again, and in 2003 two Canadian companies carried out renewed exploration. Navigator Exploration Corp., which has an exploration licence 130 km north of Nuuk, not far from Maniitsoq, carried out follow-up work on an already known deposit of ultramafic breccia in 2003. Samples of this breccia are awaiting the result of an analytical programme. Earlier drillings at the site carried out in connection with nickel exploration confirmed that the breccia is also found at deeper levels. Laboratory studies and new drillings may elucidate whether this is Greenland's first diatreme (pipe) of kimberlite.
Analyses of indicator minerals from the area around Maniitsoq show that they originate from a kimberlitic source that had the right conditions for being diamondiferous.Hudson Resources Inc. concentrated its field work around the search for sites in the Sarfartoq area south of Kangerlussuaq where known kimberlitic deposits coincided with interesting geological structures and positive indicator minerals.
Results form the study showed that three of the samples contained a total of 20 microdiamonds.The company also funded a study of the geothermal gradient of the subsurface.This showed that the conditions that existed at the formation of the diamonds were just as favourable as in Canada where there are two active diamond mines.
During the summer of 2003, BMP and GEUS carried out a field programme in West Greenland.The fieldwork consisted of collecting of 'bulk' samples and geophysical and geological mapping of several diamondiferous kimberlitic rocks. The 'bulk' sample is much larger than the samples normally collected.Three large samples of a total weight of about 3 tonnes were removed. A total of 128 diamonds were found in the three samples.All the diamonds were less than 1 mm, but they were of good quality and state of preservation.
The diamond sparkle in Greenland's melting ice
Helicopters have been hard to hire in Greenland this northern summer. The reason? Diamonds.
As the ice cap recedes because of rising temperatures, rock covered for centuries could produce spectacular finds. The interest was sparked partly by the recent discovery of a 2.4-carat diamond at Garnet Lake, in west Greenland, the largest of 236 diamonds found in a trial dig in the area by Hudson Resources, of Vancouver.
The belief in Greenland's potential riches stems from its geology, identical to that found across the now ice-free North-West Passage in Canada.
But Greenland has other potential riches too. Gold has been discovered and is already being mined, although so far at a loss.
There are also deposits of other minerals, such as zinc. Oil companies are negotiating licences to explore blocks of the coastline. The dash for minerals is fuelling another debate in Greenland: whether the country should seek independence from Denmark.
With its 56,000 people scattered over an area almost the size of Europe, Greenland depends heavily on a subsidy from Denmark for survival.
The island has internal self-government but Denmark is responsible for foreign policy.
Aleqa Hammond, the Foreign Minister in Greenland's home-rule Government, hopes that the oil and mineral companies will create sufficient wealth for a break from colonial rule.
"It is natural for a country to want to be independent," she said. "We do not feel ourselves part of Europe — we are an Arctic people. But our way of life is changing and we have to change with it."
But some argue that independence has dangers. Greenland is the land mass closest to the North Pole, and has rapidly assumed greater strategic importance as its powerful neighbours vie for a slice of the Arctic's supposed mineral wealth.
The United States is strengthening its air base at Thule, on the extreme north of the island, and the Russians have already planted flags on the sea bed.
But Mrs Hammond believes the best prospect of buying its independence lies in hydro-electricity. The vast lakes and melting ice cap provide enormous potential for electricity free from fossil fuel.
But Professor Minik Rosing, of the University of Copenhagen, who was born in Greenland, is wary. A major mineral find could be catastrophic, he said. "With such a small population we could be overwhelmed by people coming to work here."
Paul Brown Nuuk, Greenland
October 8, 2007
GUARDIAN
BRAZILIAN DIAMONDS
When diamonds were discovered by alluvial gold miners in Brazil in 1725, Indian diamond sources were near exhaustion and European demand for the stone continued unabated. From 1730 to 1870 Brazil was the world's major source of diamonds. Indeed, mining in Brazil was so active that by the late 1730s production far exceeded demand, and diamond prices fell by as much as 70%. Beginning in 1850, production rose again, following the discovery of rich deposits in Bahia, but after 1861 it rapidly declined as deposits were depleted, leading to a great shortage of rough diamonds in the European cutting centers in the late 1860s.
Productive Brazilian diamond deposits are all secondary. They are usually small, and some are of low grade, so mines typically operate for short periods. Primary diamond pipes exist but are generally uneconomic, suggesting that erosion has stripped away the richest portions from them. In 1890 and 1901, secondary diamond deposits were discovered in Guyana and eastern Venezuela, adjacent to deposits in Brazil's northern state of Rora’ma. Since 1890, Guyana and Venezuela have produced a total of about 4.5 and 14 million carats, respectively
Brazilian Production:
Total: 55 million carats
Old annual: 50,000 to 300,000 carats; 1730s to 1861
Today: 1.5 million carats
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