Digging Deep - Prospects For Mining In Africa

The prospects for African mining are better than they have been for 30 years. Political liberalisation, economic reform and World Bank backing have all been instrumental in attracting the attention of small and large mining houses alike. Companies are spending more than $400m a year on exploration alone, giving Africa around 12% of the world exploration market. However, corruption, bureaucracy, legal difficulties, labour problems and inadequate communications can still pose serious threats to investors. Tara O'Connor and Roger Dunn, senior Africa analysts, pick out the Dark Continent's current and future hotspots.

Angola. Government officials, UNITA commanders and South African ex-mercenaries compete with bandit gangs and freelance gold miners for control of key diamond-producing areas in Lunda Norte and Lunda Sul provinces. Foreign mining companies are frustrated at being unable to move back into the diamond region: some operations have begun, but they require heavy security,