USTDA Sector Brief - Mining & Minerals

Developing natural resources to help nations become energy and economically self-sufficient continues to be a key part of the U.S. Trade and Development Agency's (USTDA) program. Plans are under way in many middle income and developing countries for improvements in this important sector, and many U.S. firms possess specialized equipment, technology and services to help them achieve their goals.

USTDA advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.

The following is an illustrative list of projects USTDA has supported in the mining and minerals sector:

East Asia

No briefs at this time.

Europe and Eurasia

Romania Mining Sector Environmental Monitoring System – USTDA is providing $293,682 to the Romanian Ministry of Economy and Commerce to partially fund a study on the development of a nationwide mining sector environmental monitoring system in Romania. The study will include a thorough review of the needs and requirements for environmental monitoring in the mining sector, as well as the design of the overall system architecture. Vexcel Corporation of Boulder, CO was selected to perform the study.

Kazakhstan Naimanjal Gold Mine – USTDA provided $400,000 to partially fund a feasibility study on the development of the Naimanjal gold mine in northeast Kazakhstan. Frontier Mining Ltd. of Denver, CO conducted the study and is currently producing gold at the site.

Kyrgyzstan Small and Medium Sized Gold Deposits – USTDA is providing $290,000 to the State Agency on Geology and Mineral Resources for technical assistance on the development of small gold deposits in Kyrgyzstan. The technical assistance involves identifying the most promising small to medium-sized gold deposits not already under license, assembling geological data, and providing preliminary economic models on the sites. Kyrgyz officials visited the United States in December 2006 to make presentations on the deposits at a mining conference. American Geological Services, Inc. is providing the technical assistance.

Latin America and the Caribbean

Bolivia San Bartolomé Silver Mine – USTDA provided $760,000 to assist Coeur D'Alene Mines Corporation of Coeur D'Alene, Idaho in its development of the San Bartolome Silver Mine in Potosí. The USTDA-funded study enhanced and updated preliminary results and included a commercial, technical, financial, environmental, and economic analysis of the silver mining project.

Dominican Republic Cerro de Maimon Deposit Exploration – USTDA approved $300,000 for a study of the Cerro de Maimon Deposit mining project in the Dominican Republic. Pincock, Allen & Holt of Lakewood, CO is conducting the study.

Guatemala Energy Security and Natural Resources Regulatory Reform – A $454,440 USTDA technical assistance grant to Guatemala's Ministry of Energy and Mines (MEM) will develop a Geographical Information System (GIS) for the energy and mining sectors. The national GIS project is designed to enhance the regulatory capacity of MEM and improve the investment environment for hydrocarbon and mineral and resource development.

Mexico Terrazas Zinc-Copper Mining Project – This $605,950 grant is funding a study of the proposed Terrazas Zinc-Copper Mine development project in Chihuahua, Mexico, as proposed by Minera Terrazas S.A. de C.V. The project, estimated to cost $136.5 million, involves developing zinc-copper mining operations in northern Mexico and will strengthen the local industrial base, promote foreign and domestic investment, and spur employment and economic growth throughout the state.

Middle East and North Africa

No briefs at this time.

South and Southeast Asia

India Alternate Mining Technology Expansion – USTDA provided a $360,000 grant to the Neyveli Lignite Corporation in an effort to improving mining operations and costs. A study will be conducted to assess the viability of Alternate Mining Technology (AMT), specifically the operation of AMT equipment under the conditions at Mine-III. AMT could potentially provide a lower cost solution, extend the mine life, and increase ultimate recovery.

Philippines Mining Sector Orientation Visit – USTDA is funding an orientation visit to bring mining and government representatives from the Philippines to Arizona and Colorado for meetings, presentations, and mine visits. The delegation will also visit Washington D.C. for meetings with financial and government regulatory institutions. The visit is intended to encourage greater U.S. commercial involvement in the resurgent Philippine mining sector, as well as transfer knowledge regarding safety and environmental regulation and the administration of modern mining operations. BCS, Inc. was selected to coordinate the visit.

Sub-Saharan Africa

Nigeria Coal Resource Development – A $410,800 USTDA grant is funding a study that will assist the Ministry of Solid Minerals Development by providing U.S. mining sector expertise in analyzing the rehabilitation and development of Nigeria's underutilized coal resources. The Nigerian government, in cooperation with the World Bank, desires to redevelop this sector to alleviate power shortages in the country.

Botswana Coal Bed Methane Orientation Visit – In conjunction with a USTDA partially funded study on the development of a coal bed methane project in Eastern Botswana, USTDA sponsored an orientation visit to the United States by key government decision-makers from Botswana to learn about the U.S. coal bed methane industry. The delegation met with industry representatives, visited actual production facilities, and met with relevant U.S. government agency representatives about the industry, financing, and regulatory requirements. Koeppen, Elliott and Associates, Ltd. was selected to coordinate the visit.