- The Ebola epidemic in west Africa has led mining companies in the region to put expansion plans on hold, delaying the rollout of jobs meant for residents of the countries hardest hit by the virus.
- ArcelorMittal (NYSE:MT) has delayed a $1.7B expansion at its iron ore mine in Liberia, Rio Tinto (NYSE:RIO) has stopped work on a $20B iron ore mine in Guinea, and Sierra Leone-focused London Mining filed for bankruptcy last month after falling iron ore prices and Ebola concerns hampered its ability to attract financing.
- It wasn’t supposed to be like this: Guinea holds two-thirds of the world’s bauxite reserves as well as massive iron ore deposits, while Liberia and Sierra Leone boast troves of diamonds, gold and iron ore.
- Officials worry the pullback could set development back by a decade in a region that only recently escaped a cycle of war and political turmoil.
Source: Seeking Alpha
Follow Erika Amoako-Agyei: Erika Amoako-Agyei is an intercultural business consultant with regional expertise on the sub-region of Africa. She works with global managers, students and companies expanding into Africa.
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