Moroccan conglomerate buys shares in Canadian mining company

Manageme, an affiliate of the Moroccan conglomerate ONA, is projecting to invest 44 million Canadian dollars in the capital of a Canadian mining company, SEMAFO, which mainly operates in western Africa.

Under a "strategic partnership" understanding signed last September and presented here Monday, the two companies said they target to become a "significant" mining operator in western Africa.

According to a development plan covering the five coming years, this partnership targets the annual production of 400,000 ounces of gold by 2004 and reach a "balanced portfolio" of precious metals and raw materials.

The Moroccan partner is present in Guinea (gold, diamonds and precious metals), Cote D'ivoire (gold) and Mali (gold) and has a local branch in Niger where it explores gold while the Canadian company operates in Ghana, Burkina Faso and Sierra Leone.

The two firms are planning to allocate 100 million dollars in the coming two years to buy other projects or companies.