Identifier
Created
Classification
Origin
07BAMAKO161
2007-02-13 17:22:00
UNCLASSIFIED
Embassy Bamako
Cable title:  

A ROCKY FUTURE 30 METERS DOWN--MORE THAN GOLD IN

Tags:  EMIN EFIN ECON ML 
pdf how-to read a cable
VZCZCXRO6397
RR RUEHMA RUEHPA
DE RUEHBP #0161 0441722
ZNR UUUUU ZZH
R 131722Z FEB 07
FM AMEMBASSY BAMAKO
TO RUEHC/SECSTATE WASHDC 6883
INFO RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF INTERIOR WASHDC
RUEAIIA/CIA WASHDC
RUEHLMC/MCC WASHINGTON DC 0034
UNCLAS BAMAKO 000161 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EMIN EFIN ECON ML
SUBJECT: A ROCKY FUTURE 30 METERS DOWN--MORE THAN GOLD IN
MALI'S HILLS


UNCLAS BAMAKO 000161

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EMIN EFIN ECON ML
SUBJECT: A ROCKY FUTURE 30 METERS DOWN--MORE THAN GOLD IN
MALI'S HILLS



1. SUMMARY: The Kayes region of western Mali offers
significant mining opportunities beyond the gold reserves
already under production, but for the moment exploitation
rests with artisanal miners producing small quantities of
Garnet, Prehnite, and Agate. The Ministry of Mines has
encouraged these small operators to form an organization to
consolidate shipments of raw stones for finishing in
Thailand. The organization now hopes to buy equipment to
allow them to access better deposits in deeper soil, as well
as process the stones and add value locally. In addition to
semiprecious stones, significant mineral deposits in Mali
include iron, manganese, uranium, and bauxite, as well
smaller quantities of lead and zinc.


2. Western Mali's gold deposits have proven to be a boon to
the Malian government's bottom line (septel),but other
significant mineral deposits have yet to be exploited in
industrial quantities. Mali is already Africa's third
largest exporter of gold, but other less glamorous materials,
ranging from iron to uranium, exist in abundance. In
addition to smaller but commercially viable deposits of lead,
zinc, diamonds, and uranium, the Ministry of Mines estimates
exploitable reserves of the following:

Bauxite--1.2 billion tons of reserves

Iron--1.36 billion tons

Phosphates--20 million tons

Manganese--100 million tons

Limestone--122 million tons

Marble--60 million tons


3. With the exception of the phosphate deposits found in
northern Mali, the majority of these deposits are located in
western Mali, south and south west of the capital of Bamako.
Exploitation of these deposits remain underdeveloped in large
part because the infrastructure in the Kayes region is poor.
Only a limited network of unpaved roads, an inefficient
narrow gauge railroad, and either expensive and limited - or
nonexistent - electrical power generation sources are in
place, none sufficient to support mining efforts without
additional investment.


4. For now, mineral exploitation rests with small scale
miners focusing on semiprecious stones. The Ministry of
Mines has helped by spurring the formation of a collective to
consolidate shipping and finishing costs. The "Integrated
Development Association of Yelimane" (AIDY) sends out ten 20
foot containers per year to Thailand, mostly of bucket-loads
of Prehnite (a green, semiprecious stone useful in jewelry or
for collectors),Garnets (not the traditional red stones, but
mostly varieties of Melanite, of interest to collectors, with
some naturally occurring crystals reaching the size of
baseballs),and agates of various colors (useful for jewelry
or crafts after cutting and polishing). Association members
complain that margins are limited by high shipping and
finishing costs, but note the market seems to soak up nearly
all of what they can dig out of the ground. Many of the
deposits start at 30 meters below the surface, and miners are
looking for equipment to help them reach higher quality
deposits deeper underground. The association is also looking
for polishing and grinding equipment to finish stones in Mali
and add further value by manufacturing jewelry locally.


5. COMMENT: Infrastructure limitations will continue to
limit the attraction of industrial-sized operations while
capital and equipment costs will inhibit smaller producers.
However, with the race for access to raw materials in Africa
picking up speed, it is unlikely Mali-and its occasional
baseball-sized garnets-will be overlooked for much longer.
McCulley