News

November 18, 2008

Africa Weekly: Equinox Poised To Push Go At Lumwana, Central African Gold On The Brink, And Shareholder Discontent At Extract Resources

By Tawanda Karombo

As Europe tipped into recession, the side effects of the crisis have savaged African stock markets. Foreign capital is pulling out, but some companies are still managing to make progress. As the week opened, High River Gold, a TSX Venture listed mining company announced that was recommencing production at its Taparko-Bouroum gold mine in Burkina Faso. High River Gold has hit hard times recently, as it outlined in the statement to market which said: "The ability of the company to continue as a going concern remains dependent upon these discussions and/or forbearance from its lenders, accommodations from trade creditors, establishing steady production at its two new mines and obtaining additional financings". High River says it has received offers for the sale of the company or a portion of it.

To the south and east, Rio Tinto majority-owned Rossing Uranium said on Monday that it was examining ways of extending the life-span of the uranium extraction project at Rossing in Namibia beyond the official estimate of 2021. The mine, which was originally scheduled to close last year, accounts for seven per cent of Namibia's gross domestic product, and employs about 360 people. Rio Tinto, through Rössing and its uranium mines in Australia, is the second-largest uranium producer in the world....