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Viewing cable 07BAMAKO161, A ROCKY FUTURE 30 METERS DOWN--MORE THAN GOLD IN

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Reference ID Created Released Classification Origin
07BAMAKO161 2007-02-13 17:22 2011-08-25 00:00 UNCLASSIFIED Embassy Bamako
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 
 
 
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