(3) Reduction of the cadmium content in phosphate manure.
iron produced in the sub - region comes from Mauritania and Nigeria but in Nigeria its weight in the economy is small. Mauritania has one of the ri chest and most famous iron ores in the world which she exploits in five sites : Guelb, Media, Tarazi, Rouessa and the FDERIL mines (2). These mines bring in almost 80S! of Mauritania's foreign exchange earnings.
168. Exploitation of the ore has undergone several phases. There was a
fall in exploitation in 1970 because of the Saharan conflict. In 1980, there was a general fall in demand for iron in the world, particularly in Japan, Mauritania's major customer. Japan's importation of iron fell from 686,000 tons in 1981 to 400,000 tons in 1982. The National Industrial and Mining Company (SNIM) also witnessed a fall in its sales on the European market, the principal buyer of Mauritanian iron.
169. With enormous investments and a reversal in the situation iron ore exports reached 10 million tons in 1985, and exceeded 12 million tons fol lowing the completion of the Guelb works. This constituted a great chance for the country's economy at a time when the world price of iron ore was improving. Mauritania's present iron ore export is around this figure.
170. The other known potentialities of the sub - region are concentrated in Mount Nimba - potentialities the Republic of Guinea and Liberia intend to exploit. The former possesses 6555 of the deposits while the latter has rail and port infrastructure. The Guinean Iron Ore Company that should exploit the ore in 1989 is still not operational since it is necessary to preserve the magnificent natural environment of the site.
E. Natural Diamonds and Gold
171. Several States of our sub - region possess considerable deposits of these precious stones. But no country obtains greater part of its export revenue from them in spite ofthe sustained prices these minerals enjoy, for reasons related to the methods and conditions of their exploitation. The sites presently known are found in the Republic of Guinea, Ghana, Mali and Burkina Faso.
(1) Proposed orientation plan for economic and social development 1988-1995 (2) Business within ECOWAS Vol. 2 N° 29 Dec. 88 page 28.
ECA/MULP0C/NIA/89/XI/55
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172. Republic of Guinea is said to possess considerable reserves of gold.
The new gold mining company of Guinea (SAG) evaluates the reserves in the Siguiri, Dinguiraye and kouroussa Prefectures at 50 tons. There is another deposit at Faranah. A multinational, the Niandan Mining Company
(SMN), was established in 1986. Its capital is shared as follows ; Guinea
5025, BRGM 15£, precious stone 1051, Al Baraka 25£. Several other' companies have invested in research and exploitation of Guinean gold (1). Gold exports are expected to reach 8 tons per years towards 1991.173. Production of diamonds in the Republic of Guinea is quite flourishing.
Official exploitation, however, began about ten years ago under the Authority of the National Service for Mines Exploitaiton (SNED). Production increased from 6r000 carats to 40,000 carats from 1980 to 1983 and reduced to 23,000 in 1984. However, the potential is officially estimated at 200 million carats. The production of the multinational, Aredor Holding (Guinea, Australia, SFI USA, Switzerland, Great Britain) in 1988 was expected to
reach 162,500 carats. The quality of some of the stones is exceptional, hence the maintenance of price at a high level (2).
174. Diamond production in Ghana in 1988 was estimated at 216,000 carats,
a clear 51S decline as compared to the year before (442,000). On the con trary gold produced in 1988, was 11.6 tons, thus, representing 13.7X morethan that of 1987 (3). The Obuasi gold Mines, exploited hy the Ashanti Gold Corporation (AGC), produces 50S of the Ghanaian gold.
175. In Mali the issue concerns mainly the considerable gold deposits iden tified in Loulo, Kenieba and Kangaba. They are going to supplement the
exploitation going on in Kalana. Mali is trying to organize the gold washing
profession. Other countries possess some unexploited deposits.176. Burkina Faso conceals 52 gold deposits for gold mining but only the
Pourra mine is industrial. The others are exploited on a small - scale.(1) See Tropical and Mediterranean Markets N° 2275 since 1989. Page 1661 (2) AREDO DIAMOND MINE now produces 1.5SS of the World's output.
(3) See Business in ECOWAS vol.3 N° 16, 1989 Quarterly digest of statistics
1989.
177. There is gold also in Niger (Tera) and even Cote d'lvoire.
F - Petroleum
178. This product has, during the period under review, continuously been exercising a great influence on the West African situation, no matter the trend of variation of its price. Contrary to what is happening in the European countries where petrol consumption is falling (1) this product still constitutes the bulk of the expenditure devoted to financing of impor tations in the countries of the sub-region.
179. In Nigeria, petroleum still constitutes the main source of revenue in spite of the success recorded in 1988 - 1989 by the non - petroleum exports.
In 1989 petroleum exceeded the country's forecasts. The price estimated in the budget was, indeed, 14 dollars per barrel while it fluctuated between 17 and 18 dollars per barrel during the first half of the year and is expec ted to reach 22 dollars per barrel by the close of 1989, for the following reasons : an accidental explosion of the Petroleum Corporation "Pipe Algha"
of the North Sea, stoppage of petrol supply to the United States of America