Politics in Guinea are deeply corrupt; that is when they are not murderous. They are always tribal. That is how it is in Africa When gold is involved outsiders are interested, very interested. Then the natives are not left to get on with their own devices. The same applies to diamonds, oil, copper, anything with value. There is lots of value in Africa. Getting it means doing what it takes. It is not always pretty. Private Eye's report from Guinea shows that. The lack of main stream coverage is interesting. You might wonder why they saying nothing about this little Hellhole. The manipulators like it that way is one answer. It is mine too.
Letter from Conakry, the capital of Guinea to Private Eye 1262 page 16
from Our Own Correspondent
WHEN it rains on the hills of Simandou, the earth runs red - a sign that underneath this area of Guinea is one of the world's largest iron ore deposits.
For a long time we entrusted this 100km stretch of mountain range to Rio Tinto, the world's second biggest mining group. Our Anglo-Australian friends say they have sunk $600m into the site. But more than 10 years in, there is still no sign of the thousands of jobs that were promised, nor the deepwater port, nor the new railway - nor indeed an operational iron ore mine.
It was a sign of our frustration that in 2006 our late, unlamented soldier-president, Lansana Conté, looked for alternative partners. Several players were interested, including Chinalco, the state-owned Chinese metals conglomerate, but none landed a deal.
Enter BSGR, a Guernsey-registered vehicle for Benny Steinmetz, a wealthy Israeli diamond trader. BSGR immediately picked up exploration rights in the Simandou extension - and two years later secured half of Rio Tinto's previously agreed concession. There was no tender process as such, and Mr Steinmetz has no experience developing a multi-billion dollar ore system. How unkind our enemies were to suggest the new partnership owed much to his friendship with Conté's fourth wife.
Rio Tinto complained, but to no avail.
Happily, a few months later, at the end of 2008, Conté, long addled by multiple ailments, passed to a better place. Within hours, the military had seized power. Our dashing young Captain Dadis pledged to end a culture of corruption, kick out the drug traffickers (including several law enforcement officers, senior army people, judges and relatives of the late president) and review all mining contracts.
But Dadis soon changed tack, went back on another promise ruling himself out of elections, and, having decried the personality cults of past leaders, decided what we really needed were 10ft-high posters of himself all over the country. When people went to protest, the army went on a killing and raping spree. Dadis was then shot in the head by his own bodyguard last December.
Dadis is in permanent convalescence abroad, and we now have, for the first time in 50 years, the promise of free and fair elections. Rio Tinto also thinks things are looking up, and in a curious way. Widely regarded with suspicion in Guinea, it turned to our new best friend, China, who has promised billions in infrastructure development in return for access to our raw materials. Thankfully, our mines minister, former Wall Street banker Mahmoud Thiam, has good knowledge of Asian business practices: he was recently appointed president of the offshore branch of a Hong Kong investment company with close ties to the Chinese secret services.
So while Rio Tinto was engaged in a public spat over corruption in China, it was at the same time negotiating a new joint venture with Chinalco for Simandou's riches. The billion-dollar March deal looks generous to Chinalco, and will no doubt help smooth over any lingering difficulties Rio might have had in China. Thiam has welcomed the deal, but warned Rio Tinto it will never get back what it lost to Benny Steinmetz. Our Israeli pal this month confirmed his own new deal, a US$2.5bn agreement with Brazil's Vale - about 20 times what he has spent on Simandou, and he gets to keep 49 percent of the concession.
Alas, our long suffering masses are unlikely to feel the benefit of this windfall; and both deals need the approval of a new parliament. The great powers behind the investors in our mines have made it clear life would be much easier for a new government that chooses not to poke around too much about how some of the world's biggest companies got their hands on our jewels.