been established. The small size of the local market, weak infrastructure and lack of skilled labour timit. industrial development. Ho!'rever, the processing of cocoa, coffee, timber, sugar cane, palm oil and fish are considered feasible.A/40/ 430 English Page 12 32. Preliminary surveys indicate uranium, alluvial gold and iron. as yet taken place.the presence of titanium, silica, manganese, However, no significant mineral exploitation has 3. Energy 33. The dense forests of Equatorial Guinea provide the most inportant energy source for the population. The public electricity system covers only three cities: Malabo and Luba on Bioko and Bat,a in Rio Muni. The const.ruction of a3.2 mm hydroelectric station near Bata was conpleted in 1983, substantially improving the power supply of the city. The electric supply on Bioko Island depends largely on small diesel generators and the system operates irregularly. Oil exploration has been under way since 1981. A Spanish company, a joint venture,drilled four wells off t,he coast. of Bioko in 1982 and found oil in one well. In April 1984' a gas find was announced off Bioko. Some other companies have also been granted exploration rights near Rio Muni. The prospects for oil production seem encouraging. 4. Transport and communications 34. At the beginning of 1981, t,he road system consisted of 11240 kilometres, of which 528 kilometres vrere paved and 712 kilometres were of laterite. Of the L,240 kilometres, 216 kilometres were on Bioko and 1,024 kilornetres on Rio Muni. Illost. roads are in need of repair or rebuilding. Transport and communications are complicated by the fact that the mainland and the islands are situated at a great distances from each other. Sea and air traffic between the capital city of Dtalabo on Bioko Island and the main city of Bata on continent,al Rio tttuni is irregular and
**Analysis**
The text appears to be discussing the state of Equatorial Guinea in terms of its economic development, natural resources, and infrastructure. It touches on the country's mineral resources, energy production, and transportation systems, which suggests that these areas are crucial to the country's overall development.

**Category**
Economic development, Natural resources and environment, Transport and communication