Libya goes for gold in Central Africa

CAR has significant diamond deposits

By Lucy Jones BBC, Bangui

The Central African Republic (CAR) has signed an agreement giving Libya the right to exploit oil and mineral resources in the country for 99 years.

The deal might have been signed as long ago as June during a meeting between Central African President Ange-Felix Patasse and Colonel Muammar Gaddafi in Syrte, Libya.

CAR has oil gold, diamond, uranium and other mineral deposits which are largely unexploited.

Locals are sceptical about Libya's motives in CAR

The deal comes as hundreds of Libyan troops remain in CAR to provide the president with security following coup attempts and military attacks by opponents in May and November 2001.

Libyan experts have already visited the country and the African Libyan Investment Company (LAICO) has been established to oversee exploration of the resources.

CAR Minister of Mines Andre Dorogo said: "With regard to oil, it's a matter of us trying together to profit from Libya's experience.

"We need to undertake a study to value our oil reserves in view of future exploitation," he explained.

The deal will be unwelcome news to France, the former colonial power, which used to enjoy mineral exploration rights in the republic.

Presidential security

Libyan troops have been stationed in the former French colony since May 2001, when Colonel Gaddafi sent in a force to successfully help President Patasse put down a coup attempt.

Libyan soldiers again came to the president's rescue last November, bombing rebel positions when the dismissed army chief, General Francois Bozize took over the northern part of the capital, Bangui.

Libyans ensure President Patasse's security

Local people are suspicious of Libya's intentions in the impoverished landlocked nation.

Some worry Colonel Gaddafi wants to create a Muslim state in the heart of Africa.

But government officials say the latest agreement is purely in the economic interests of both countries.

The new deal with Libya might upset France.

At the time of CAR's independence, Central Africa gave France rights to its subsoil resources, including uranium.

In recent years the Central African Government has wanted to re-negotiate the agreements, as has happened in other former European colonies in Africa.

But relations with the French have deteriorated to such an extent that local observers question whether the treaty with Libya was signed to override these accords in the safe knowledge that France is unlikely to intervene.