AMBASSADOR SIGNS USTDA GRANT FOR FEASIBILITY

UNCLAS DAKAR 001940

SIPDIS

SIPDIS

STATE FOR EB/CBA, AF/EPS, AF/W AND AF/PDPA
STATE PLS PASS TDA
USDOC FOR 3131/OIO/ANESA/MSTAUNTON/GLITMAN/GLOOSE
USDOC FOR 4510/IEP/ANESA/OA/PMICHELINI/AROBINSON/KBOYD
ECOWAS POSTS FOR ECON/COMMERCIAL OFFICERS

E.O. 12958: N/A
TAGS: BEXP EMIN SG
SUBJECT: AMBASSADOR SIGNS USTDA GRANT FOR FEASIBILITY
STUDY ON PHOSPHATE TRANSPORTATION FROM MATAM


1. On August 1, Senegalese Minister of Energy and Mines
Madicke Niang and Ambassador Jacobs presided over a
signing ceremony formalizing a USD 314,000 feasibility
study grant from the U.S. Trade and Development Agency
(USTDA) to the Direction of Mining to assess the costs of
transporting mined phosphates to a Senegalese port of
export. The signing ceremony received wide press coverage
by the local media.


2. The feasibility of the exploitation of the Matam
phosphate deposits depends on the delivered cost of the
phosphate to a port of export. Senegal's Director of
Mines and Geology, Dr. Moussa Sylla, lauded USTDA's answer
to their long-standing prayers for a feasibility study to
assess the various costs. To date, the phosphate mines of
Matam remain unexploited due to their remote location in
eastern Senegal.


3. Under the USTDA feasibility study a U.S. consultant
will review a number of transportation alternatives to
include barge, road and rail models. The rail models
would require the construction of new lines and/or the
upgrading of existing lines to heavy haul standards. In
addition to developing transportation models, the
consultant will undertake phosphate movement forecasts to
determine the volume of phosphate to be shipped from the
mine. Forecasting will cover the estimated delivered
price of the commodity at port, estimated world commodity
price, and estimated production start-up costs.


4. The feasibility study will also tie in with another
USTDA-funded study on the development of a multi-commodity
bulk port at Bargny, which could handle mineral exports
and which is adjacent to the proposed Millennium Challenge
Account industrial platform at Diamniadio.


5. The signing ceremony generated substantial and
positive coverage in local media, including the Senegalese
Press Agency, Le Matin (circ. 15,000),Le Quotidien (circ.
18,000),Le Messager (circ. 5,000),and Le Soleil (circ.
22,000),as well as the evening news on the national
television network RTS. Reports cited Minister Niang as
saying that the grant "confirms the U.S. Government's day-
to-day engagement in supporting development projects in
our country."


6. COMMENT: Should the costs of transporting Matam
phosphate to a port or processing facility prove viable,
this USTDA feasibility study would move to the
implementation stage which could result in more U.S.
exports to Senegal while contributing to the improvement
of Senegal's transportation infrastructure. END COMMENT.

JACOBS