A Bahamian mining company known as "Bahamas Mining", will invest 20 billion CFA (about 42 million U.S. dollars) in Togo for extracting huge bauxite deposits in Agou region situated nearly 110 kms to the northeast of the Togolese capital, Togolese mines and energy ministry sources said Tuesday.

   Negotiations are still continuing between Togolese government and Bahamas Mining company, which are expected to culminate shortly with the signing of a major mining contract for this deposit.

   Bauxite is a sedimentary red colored rock, mainly composed of aluminium, with iron and silica oxide, usually extracted in form of aluminium.

   The two sides are also negotiating a deal for mining iron deposits in Bandjeli region situated approximately 400 kms to the southwest of the Togolese capital.

   Geological explorations carried out recently in the country led to the discovery of gold in several underground zones in Togo.

   Togo already exploits several mineral resources such as phosphate and clinker for local cement production.

   The country is one of the world's leading exporters of phosphate, reputed to be of good quality, toward Europe and Asia, especially to Japan.

   A western company is currently negotiating for a contract to conduct explorations in oil blocks discovered recently along the Togolese coast.