Cut backs at Rio Tinto, Implications for Africa

Rio Tinto, the mining giants announced last week that due to the current economic down turn they would scaling back some of their operations.
http://www.riotinto.com/media/5157_16956.asp

My reaction at such news was "oh that is a real pity for countries like Uganda who have only just recently started exploring their mineral wealth"

The main concern here is that although Rio Tinto extracts resources out of developing countires for (one could argue ) the benefit of the developed world they create jobs in these countries.

I understand that the biggest consumer of these resources China, has stopped spending in a big way thereby reducing the demand for these resources. Whilst on the one hand this means that resources such as precious metals do not live African countries by the bucket loads, on the other hand if this is a big source of income for an African government or a source of jobs for a given country clearly the ordinary man on the street is bound to feel a real pinch as result.

I remain hopefull that the downturn will be shortlived as the people who will suffer the most are those at the bottom of the pile.

Our producers here at Ethnic Supplies have already seen the consquences as the price of raw materials has gone but they are unable to raise the prices of finished products to match.