Farim phosphate in Guinea-Bissau written-off by Red Back Mining (RBI.TO)
Perusing Red Back's web-page, I noticed that the Farim phosphate mine project in northern Guinea-Bissau (near the Senegal border), West Africa, was written off as worthless. Why? Because the government of Guinea-Bissau was allegedly reneging on Red Back's phosphate license. I don't know how true it all is. Red Back is a gold miner (originally Australian) that is operating the successful Chirano gold mine, the newest operating gold mine in Ghana. Red Back is also acquiring the Tasiast gold mining property in Mauritania from Rio Narcea/Lundin.
Red Back originally got Farim as a quasi-"freebie" along with the Canadian company, Champion Resources, with which Red Back reverse merged in a quasi-shell acquisition in order to get traded in Toronto on the TSX. Red Back had been traded in Sydney on the ASX before that. I bought a little Champion before the merger, and doubled-up after it. It's doing well now; the stock is way up.
I got interested in the incidental Farim phosphate "freebie". If Farim were developed, it would be the ONLY industrial activity in the country of Guinea-Bissau, a contender for the world's poorest and least developed country. An Arab company had promised to buy Farim from Champion for something like US$10 million, but failed to come through, and Red Back is now suing, I think. Good luck! ???? Especially if the government of Guinea Bissau has rendered the license a worthless nullity.
If anyone actually knows anything about A. phosphate mining, and B. how to commence industry in the Guinea-Bissau mileu and regime, maybe there is an opportunity here. Perhaps Red Back would part with the remnants of its written-off license, rather cheaply, to someone who could "deal" with the Guinea-Bissau government (and rising criminality, funded mainly by coastal drug smuggling). Or maybe another approach is possible in Guinea-Bissau.
The phosphate deposit is apparently quite good. Transport is not. Government is not.
FL
