VZCZCXRO3400
OO RUEHBZ RUEHDU RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHRY #0125/01 0561719
ZNY CCCCC ZZH
O 251719Z FEB 10
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4506
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUEHZK/ECOWAS COLLECTIVE
RHEFDIA/DIA WASHINGTON DC
RHMFISS/HQ USAFRICOM STUTTGART GE
RUEAIIA/CIA WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 CONAKRY 000125 
 
SIPDIS 
 
E.O. 12958: DECL: 02/26/2021 
TAGS: PGOV PREL ASEC GV
SUBJECT: MINING COMPANIES CONCERNED ABOUT GOVERNMENT 
APPOINTMENTS 
 
REF: A. CONAKRY 0102 
     ¶B. 09 CONAKRY 0470 
     ¶C. 09 CONAKRY 0436 
     ¶D. 09 CONAKRY 0559 
 
Classified By: Ambassador Patricia Moller for reasons 1.4 (b) and (d) 
 
¶1.  (C) SUMMARY: A/PolChief met with representatives of 
several mining companies over the past week to discuss how 
the transition is impacting Guinea's most lucrative industry. 
While the representatives seemed optimistic about Guinea's 
political future, they were universally disappointed by the 
re-appointment of Mahmoud Thiam as Minister of Mines (reftels 
A), stating that it would be difficult to fully restart 
programming with Thiam in place. In particular, many mining 
companies fear that Thiam, who is reportedly still working 
closely with junta President Dadis Camara, will use the 
transition period to guarantee contracts that will personally 
benefit CNDD members. END SUMMARY. 
 
 
---------------------------- 
RIO TINTO "STILL HOLDING ON" 
---------------------------- 
 
 
¶2. (C) Stephen Din, the Country Director of Rio Tinto, was 
optimistic about Guinea's long-term political future. 
However, he argued that the mining sector will continue to 
suffer during the transition period with Mahmoud Thiam at the 
head of the Ministry of Mines (MOM). As such, Rio Tinto would 
continue to "hold on" and wait for the elected government to 
take power. According to Din, the re-appointment of Mahmoud 
Thiam as Minister of Mines shows that the old CNDD guard 
maintains significant influence over governmental affairs. 
Referring to Thiam as a "CNDD hack," Din believes that the 
Minister will use the next six months to ensure that 
companies like the Chinese International Fund (CIF) and 
Israeli mining company BSG Resources (BSGR) (reftels B & C) 
are able to secure their contracts in return for bribes. 
 
 
¶3. (C) Din said that Thiam, an American citizen and former 
Vice President of UBS in New York, has personally benefited 
from promoting CIF and BSGR, as evidenced by his recent 
purchase of a $3 million property in New York. Thiam is 
allegedly working with the CIF to ensure that China Sonangol 
obtain a large portion of Guinea's offshore oil exploration 
mileage. With this mileage, the CIF plans to create a 
Sino-Guinean oil company (reftel D). According to several 
sources, including Din, Thiam is aiming to eventually be 
appointed President of the Company after the transition 
period. Din said that before the formation of the new 
government, several rumors circulated that Thiam would be 
removed from his job. However, Din said that people now 
believe that Dadis influenced Konate and PM Jean Marie Dore 
to keep him in the government. In this context, Din said that 
Rio Tinto is hesitant to dramatically increase their 
exploration efforts which they scaled down considerably in 
¶2009. 
 
 
--------------------------------------------- ------- 
GAC MAY RAMP UP CONSTRUCTION AND EXPLORATION EFFORTS 
--------------------------------------------- ------- 
 
 
¶4. (C) In a separate meeting with A/PolChief, Yero Balde, a 
project manager for Guinea Alumina and a rising member of the 
Forces Vives, confirmed Din's concerns about Thiam and the 
transition period. Balde said he was surprised by Thiam's 
re-appointment as Minister of Mines, and sees it as a sign 
that Dadis still holds considerable influence over the 
transition government. (Note: Prior to the formation of the 
new government, Balde's name was circulated as a potential 
appointment for Thiam's position. END NOTE.) Balde confirmed 
Din's belief that Thiam was appointed in order to ensure that 
CNDD negotiated mining contracts were guaranteed in the new 
government. 
 
 
¶5. (C) Though GAC slowed their exploration and construction 
activities significantly in 2009 due to the global economic 
crisis, they plan to ramp up their mining efforts over the 
next six months. According to Balde, GAC is confident that 
that the transition will provide a more stable investment 
climate than that created under the CNDD. 
 
 
CONAKRY 00000125  002 OF 002 
 
 
 
-------------------- 
DADIS STILL INVOLVED 
-------------------- 
 
 
¶6. (C) Representatives from BHP Billiton and Newmont mining 
both discussed the lingering influence of Dadis and the CNDD 
within the GOG. According to both companies, Mahmoud Thiam is 
working closely with Dadis to ensure that deals that provide 
kickbacks to the leader and his CNDD compatriots are assured 
throughout the transition. BSGR, for example, was recently 
awarded a government approval for moving their supplies out 
through Liberia rather than Guinea, saving the company 
millions of dollars in the short-term. According to several 
contacts in the business sector, BSGR bribed Dadis and Thiam 
to acquire preferential treatment. Representatives from BHP 
and Newmont also claim that Burkinabe president Blaise 
Compaore has vested interest in several deals in Guinea which 
influenced the appointment of Thiam and several other key 
economic ministries. 
 
 
------- 
COMMENT 
------- 
 
 
¶7. (C) Mining companies sustained considerable losses in 2009 
due to severe government harassment and the global economic 
crisis. According to many mining companies in Guinea, there 
are brighter days in the future - though most likely not 
until a democratic government is in power. During the 
transition period, it will be significant to watch if Thiam 
and other CNDD minister holdovers are able to exert the 
financial control that they are reportedly intending to 
wield. 
Moller