Gecamines teams up with Phelps Dodge August 30, 2005
Democratic Republic of Congo (DRC) state mining house Gecamines was concluding an investment deal worth $1.6 billion (R10.3 billion) over 10 years with US giant Phelps Dodge to revive a mine that would eventually yield an annual 400 000 tons of copper, the company said yesterday.
Gecamines chief executive Nzenga Kongolo said this and other deals to rescue the mining industry aimed to boost copper production to up to 800 000 tons a year by 2015, nearly twice the amount produced during a peak in the 1970s.
The DRC is rich in resources but years of dictatorship and war have destroyed Gecamines, which is now being reorganised under a World Bank-sponsored reform programme.
Lundin Holdings and Phelps Dodge will control 82.5 percent of the operation while Gecamines will retain a 17.5 percent share.
- Reuters, Lubumbashi
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