African countries are discussing plans to form a mineral OPEC to better serve their interests.
African leaders are pushing for tougher terms on mining concessions after 25 years of structural adjustment when countries cut red tape and offered generous tax holidays to foreign prospectors.
The new dynamic was on display at a recent mining conference in Senegal. The chief executive officer of a multinational Africa mining firm was speaking, but Senegal’s president didn’t appear to be listening…..
“I think we’re at a turning point,” says Bonnie Campbell, political science professor at the University of Quebec in Montreal and author of “Mining in Africa.” “There’s been a quarter-century where a certain investment-friendly road has been taken. [Now] there is a recognition that there needs to be another focus.”
A Cartel Modeled After OPEC?
The capstone of that push, at least for Wade, would be an international alliance of Africa’s mineral-rich nations, modeled after OPEC a pan-African body that could influence the price of metals like the cobalt in Chinese-made laptop and cellphone batteries, 90 percent of which comes from Africa, according to the business watchdog SwedWatch.
“It’s an ambitious but feasible idea,” says Mazou Yessouph Faudy, geological director for Niger’s Mining Ministry. “Our economy is falling. As a producer of uranium, it would be good to involve ourselves in a union of producers that could set the price.”
Already, according to estimates by gold mining company Randgold Resources, the continent produces 30 percent of the minerals required by the US and China.
“[Africa is] going to become a very important player in the commodity and minerals market,” says Roger Dixon, chairman for South Africa’s SRK mining consultancy, citing China’s 11.9 percent growth in its gross domestic product, the total of goods and services produced, in the first quarter of 2010. “With that kind of demand, I think it’s a great opportunity for Africa to move to the forefront of things.”
Certainly good idea for Africa, a continent that is full of natural resources. When uranium prices were flying over $100 in the international markets , Avera (a french company ) that has been exploiting Niger main resource for over 50 years, locked the price for that poorest country in the world at around $ 25.
Considering Africa has some of the poorest nations on the planet, I can’t really blame them for wanting to band together to control their resources. Problem of course, like always will be corruption. Just look at the Petro states and where that has lead those governments.