Cameroon Diamond Mining Industry - South Korea CK Mining develop Diamond Mine Yakadouma
Yaounde, Cameroon Africa(Cameroon News) -
Facing tremendous pressure in Guinea, RUSAL is now looking at Cameroon’s bauxite reserves.
UC RUSAL (0486.HK: Quote), the world’s largest aluminum manufacturer, is looking forward to invest in Cameroon in tune with its decision to expand its sources of bauxite, the company revealed on Wednesday.
Yakov Itskov, director of RUSAL’s global division, indicated that they plan to set up a new management and undertake a mining appraisal in Guinea, where RUSAL has a major operation, as prospective challenges to investors. This has been stated as the reason why the company is looking out for partners in other parts of the globe.
Itskov was addressing the press in a press conference that was arranged in Cameroon so as to announce the decision of the government to synergize with the company to put in place a joint working group which would look into various avenues for investment which could also be pointing at robust sectors like energy and infrastructure.
“Cameroon is of great interest to RUSAL because it possesses important reserves of bauxite, the basic raw material for the production of alumina and aluminium,” Itskov said.
The big boss of RUSAL was all praises for the country’s political stability. Cameroon is spearheaded by President Paul Biya, who also has the credit of being one of the leaders who have served the longest term of office in Africa having been the undisputed ruler of the country for over 29 years now.
He is anticipated to be competing for the President’s post once again this year in the forthcoming Presidential elections. The President had in fact overcome a lot of opposition to pass an amendment in 2008 removed term limits.
RUSAL has had a very long stint of operations in Guinea but has been dragged into the limelight a lot of time owing to their involvement in numerous arguments with the government and unions. Following the elections last year, the government has been desperately making an attempt to force mining reforms, which in turn poses high risks of displeasing investors. [ID:nLDE74F1MG]
A senior mines ministry official from Guinea told Reuters last month that it was “moving toward a showdown” with the Russian firm. “The rise to power of the new government headed by Alpha Conde could result in the revision of laws regulating bauxite mining and development. All this may adversely affect the investment climate there,” Itskov said. “RUSAL, having an understanding of the importance and necessity of economic and political stability needed for investing in the bauxite industry development, is trying to expand its resource base and looking for new partners and alternative raw material sources,” he said.
