Disputes over Africa's mineral reserves

Africa's huge mineral riches continue to draw investors, with recent reports that China is making a $7bn deal with Guinea, swapping oil and mineral rights for huge investments in infrastructure.

However, there has been an upsurge in disputes between mining companies and the governments of some of Africa's poorest and most volatile countries, which have rich deposits of oil, copper, cobalt, bauxite and diamonds.

Companies in Congo and Guinea are arguing about whether some of their investments must be handed over to the state.

The question is, will companies' contracts hold good? What happens when a new government comes into power and says the old licences were awarded improperly and wants to re-write them?

One of the African countries where this happened is Liberia.

After the civil war ended in Congo, the government set up a review of mining contracts which suggested they be renegotiated where they could be shown to be unfair or corruptly awarded.

Mining and oil companies are used to dealing with political risk - but are international companies now running scared of new governments challenging their old contracts?

First broadcast on Business Daily