mining review, page-6

MINEWEB SPIN ON THINGS

DRC Ministry of Mines reaches important milestone in mining contracts review process
Thursday , 07 Feb 2008
- All Companies Holding Contracts Under Review to Receive Summary of Commission Findings By Wednesday 20 February 2008

Following a series of public and individual meetings during the Mining Indaba in Cape Town, H.E. Victor Kasongo, Vice Minister of Mines for the Democratic Republic of Congo (DRC), is pleased to advise on behalf of the Ministry of Mines that all contract holders of those contracts under review will receive a summary of the Commission's findings as it pertains to their particular case in two weeks' time.

At present, there are 60 contracts under review. These contracts are being reviewed for their performance under the following five categories:

1. Legal / judicial

2. Fiscal

3. Technical

4. Environmental

5. Social / welfare

The Government is now in receipt of the Commission's report and Mr Kasongo reiterates that the Government and his Ministry seek an equitable dialogue with all stakeholders to reach the optimum way forward for all. He said,

"The Government fully recognises the risks that many took when doing business in the DRC in the past, and while investing in the DRC is now an increasingly more stable prospect, we are sensitive to the new risks that present themselves at a global level, due to the volatility of the financial and capital markets. There is a range of investor types who have interests in mining contracts in the DRC, and they vary from the dedicated to the speculative. "This is about minerals and metals, not just about markets", he added.

He went on to emphasise the DRC's goals of working with those parties who have demonstrated good faith and best practice in their investments in the DRC, and who have delivered on their commitments, while also continuing to demand that those whose interests have been speculative to be accountable and to deliver working plans in consultation with the Government.

Mr Kasongo concluded,

"The DRC is pleased with the positive reception of its plans as laid out at the Indaba. We are also keen to listen to the concerns of the financial markets. It is in the interests of the DRC and its investors that the elements of contracts that need to be adjusted are dealt with quickly and clearly".

"We are very pleased with the nature of the discussions we have had with our investor base. Our task is to get these contracts through the process, and to ensure as result that the mining companies in the DRC combine high profits and shareholder value with absolute political and legal security".

For further information please contact:

Roger Carroll / Helen Tarbet James Doherty

Bell Pottinger: +44 (0) 207 861 3232 +44 (0)7799 037 279