Sunday, March 04, 2007

Steel Co. Looks to Senegal

Source: Steel giant targets Senegal mine - BBC.com

The very large steel company, Arcelor Mittal, plans to invest over $2.2 billion in a Senegal mining project. The project is aimed developing an iron ore mine in the Faleme region. The company also hopes to set up a new port near Dakar. The projects will also include a rail line which will run between the Faleme region and Dakar.

The production of the new mine will begin in 2011. Arcelor Mittal says that the site holds more than 750 million tonnes of iron ore and that the company hopes to mine about 15 to 20 million tonnes per year.

The company also stated that the prospective mine will be an important provider of iron for the company's European plants. In addition, the company hopes to make the West African region a central mining hub for other plants around the world.

Questions:

1. How will the establishment of a new iron ore mine effect the people of the West African region?

2. Are there any potential development concerns that may arise due to the development of the new plant?

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