MOST mining companies operating in the Democratic Republic of Congo are expected to stay following a statement issued by the Minister of Mines, who condemned the leak of a draft report that reportedly recommends certain contracts be renegotiated or terminated.
Copper mineralisation at Mawson West's Kapulo joint venture with Anvil Mining in the Congo
The share price of mining companies operating in the country took a hammering after a media article reported 61 mining contracts were under review including those of BHP Billiton, Freeport McMoran, AngloGold Ashanti and Anglo American.
The mining contract for the Dikulushi mine, owned by Perth-based Anvil Mining, has reportedly been recommended for cancellation, with the review saying the operation earns nothing for the state.
Anvil's share price has dropped over 23% since the report surfaced two days ago, but recovered some ground in trading this morning, climbing 7.4% to $17.62.
Shares in Anvil's joint venture partner in the Kapulo copper project in the DRC, Mawson West, has dropped 38% this morning to an intraday low of 16c, following a trading halt after it posted an extract of Anvil's position of the situation in the country.
Anvil said it had not received any communication from the Minister or the Government relating to the review.
In the preliminary report, drafted by the mining review commission, 24 contracts had been recommended for termination and the remaining 37 were to be renegotiated.
However in a statement reported in Mineweb, the Minister of Mines Martin Kabwelula condemned the leak of the draft report and gave assurances that most mining companies operating in the DRC will remain in the long-term.
"The speculation is not based on any official document, but on a leak of an early draft from within the commission. The Government deplores the leaking of this draft and the uncertainty that it has understandably created," Kabwelula said.
"The review process has been damaged by this grossly misleading leak of information, but the DRC remains determined to manage the license review responsibly and to the benefit of all responsible companies.
"It is expected that, after all irregularities have been corrected, the great majority of companies currently in the DRC will remain in the country for the long term. This has been and will remain the position of the Government."
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