Treasury In West Africa For Mining

Perhaps one of the biggest new stories in the mining industry is the prospect of developing West Africa where resources are inexhaustible

. Many companies in Australia have taken notice. One country in particular, Burkina Faso, has been slated for development by a number of Australian and international companies. The region has vast mining potential, particularly for gold, iron ore beneficiation, and other base metals. But it also has its own problems and challenges, both in business and politics. This month Australian Mining caught up with one of Burkina Faso"s most prominent Australian miners, Gryphon Minerals, and got the low-down on developing business and politics in the region from managing director Steve Parsons.Risky business?Translated to English Burkina Faso means "the land of incorruptible men" and Parsons says Gryhpon has not had any trouble in the region since it started there in 2007. "We"ve never seen any corruption there at any level, it"s a really good place to be," he says. "It"s a country that"s never had any violence in its history, there"s never been a war there." Parsons also told Australian Mining Burkina Faso"s democratic leaders were "genuinely loved and respected" and because there were few tribal factions "everyone gets on with each other". But while companies continue to line up to make a start in Burkina Faso the Australian Government says all is not well in the region"s local politics. Like many countries in West Africa Burkina Faso is struggling with poverty and with poverty comes unrest. The Australian Government currently advises travellers to reconsider visiting Burkina Faso because of the risk of "civil unrest and violent crime. "Armed bandits operate throughout Burkina Faso. You should avoid travelling alone or after dark," it says. The Government also strongly advises against travelling near the border regions around neighbouring Mali, which has suffered significant civil strife and which has a "high risk of kidnapping targeting foreign nationals". magnetic drum separator:http://www.hx-crusher.com/magnetic_separator.html china dryer:http://www.hx-crusher.com/dryer_machine.htmlWhile Parsons told Australian Mining Gryphon"s projects were well removed from any violence or crime, a question mark still remains over much of the wider region. But global issues are as much a concern for the company as Burkina Faso"s local politics, and on this front the experts are bullish. The marketRBC Capital Markets analyst Geoff Breen told Australian Mining the wider perspective for West African-focused gold companies was generally positive. But he said market instability led by the crisis in Europe was making life hard for emerging miners and had caused an overall de-rating in the market. Breen said while such uncertainty would normally boost confidence in gold, it had impacted costs and "squeezed margins" for mining companies. "That"s part of the de-rating of the sector," he said. On Gryphon"s share price in particular Breen sounded confidence but said the company would have to wait out some of the current economic turmoil, which it had the profile and cash reserves to achieve. "Gryphon is in line with the emerging sector," he said. And on the market in general he was bullish, despite some of its problems. "It"s complex. It"s all about confidence at the moment and confidence in the market has shattered," he said. "But I think the risk/reward on the gold sector is heavily skewed to the north."While Gryphon is undoubtedly facing some challenges with its Banfora project the development sounds a welcome and exciting international presence in Burkina Faso. The mine will be a well needed development in a region desperate for investment, and as one of the most established Australian miners in West Africa, Gryphon will be one to watch.As the professional manufacturer of complete sets of mining machinery, such as china magnetic separator, Henan Hongxing is always doing the best in products and service.

by: chris lee

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