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Guinea mining contracts under review 

ANGLOGOLD Ashanti Ltd, which owns the Siguiri gold mine in Guinea, said its operations in the West African country are continuing even after the ruling military junta declared on Saturday that it had canceled all mining agreements.

"Our operations are continuing," said AngloGold's spokesman, Alan Fine, from Cape Town yesterday. "Our understanding of the situation is that the authorities have said they are going to cancel all operations where mining rights have been obtained under the table and that doesn't apply to us."Captain Moussa Dadis Camara, head of the junta which seized power last Tuesday following the death of President Lasana Conte, said a decision had been made to cancel all mining agreements in the country and revise existing contracts due to corruption in the sector, according to a statement to political parties at the Alpha Yaya Diallo military camp in the capital of Conakry, Bloomberg News said.

"Activities in the gold-bearing zones have been arrested at the moment," Camara said on Saturday. "According to our information they are reviewing mining rights," said Fine. "We are happy and willing to talk to the new rulers as long as the interests and rights of all parties are recognized."Guinea is the world's fourth-biggest producer of bauxite, an ore used in the production of aluminum, after Australia, Brazil and China(cnmining). Bauxite and related industries account for 80 percent of Guinea's foreign exchange earnings.

The nation produced 14 million tons of bauxite last year, according to the United States Geological Service. Violent protests in early 2007 contributed to the price of alumina jumping 76 percent in two months. Rio Tinto Group, Alcoa Inc, United Co Rusal and AngloGold have operations in the country.

Rio Tinto, which is exploring part of the Simandou iron ore deposit, last Tuesday told its staff in the capital to stay at home. BHP Billiton Ltd, which plans to develop an alumina refinery and bauxite mine in a venture with Global Alumina Corp, has shut its Conakry office.