Major multinational mining companies have been flocking to West Africa over the past few years, as iron ore's soaring price and Africa's cheap labor have offset concerns about regional instability.
Freetown, Sierra Leone
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West Africa – a region known for its poverty, civil wars, and flimsy governments – looks set to become one of the world’s most important sources of iron ore, the primary ingredient in steelmaking.
Major multinational mining companies have been flocking to the volatile region over the past few years as the price of iron ore has soared, more than tripling between 2007 and 2010. Demand for the commodity is also booming, thanks largely to the growing appetites of steelmakers in China, which is the world’s biggest iron ore importer.
The latest West African investment was announced last week, when Vedanta, India’s largest exporter of iron ore, revealed that it was buying a majority stake in Western Cluster Ltd., a network of iron ore deposits in the West African nation of Liberia. The investment marks Vedanta’s first foray into iron ore outside of its home country.