Hi Oz
I have been reading your posts in the past few minutes and I wish to challenge some of your statements. Firstly the company has access to land that they believe is prospective for finding cobalt and copper deposits. As they have not yet done any significant geological work on those areas they have no mineable deposit currently. They have never said that they do have a mining resource currently available.
They do however have access to a processing plant and a fairly new one at that having only operated for several years in the past 4.5 years since it was built.
In the absence of an existing mineable deposit it makes perfect sense to source ores from small mining companies that are operating in the nearby area which could well be up to 50 to 75kms away from the Luapula facility. Incidentally I have been involved personally with such an operation in South America when the gold ore we were mining proved insufficient to keep the gold recovery plant going. A plan was made to source a regular supply of high grade ore from small mining companies within a 100 km radius of the plant. When I left that company to return to Southern Africa (wife was 7 months pregnant with our 3rd child) the use of small mining companies was working very effectively and both sides to the agreement were very very happy. The richness of ore bodies in some areas of the world are simply amazing and relatively easy to mine as they are from surface. The DRC copper cobalt deposits are simply sensational. Any doubts ask Glencore
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Back to the DRC ….just because they are "small mining companies" does not automatically mean they are artisanal miners i.e. working with picks and shovels, nor does it imply that they are in any way shape or form using child labour. With the quantities that will be required to service the JV at Luapula the ore to be supplied will need to be mined on such a scale that it will need to be done with machinery. In any event the company is conducting audits of the 7 companies that wish to supply the JC company with ore.
An important part of the WFE announcement covers this very subject:
Responsible and Ethical Mining and Processing
It is further a requirement under the Ore Purchase Agreements that all mining operations, that are proposed to supply the Luapula Processing Facility, will be the subject of an audit to be carried out by the Company and its consultants, Kumi Consulting Ltd (Kumi), to demonstrate that the operating practices are aligned with the relevant international standards, in particular, the OECD Due Diligence Guidance for Responsible Mineral Supply Chains in Conflict-Affected and High-Risk Areas (the OECD Guidance) and further meet Winmar’s minimum standards in respect to responsible and ethical cobalt mining.I think that from that statement it is clear that WFE is putting in place systems to ensure that any ore supplied to the JV is ethically mined.
In closing I don't think that there is much more you can do than that and I hope that the ASX is satisfied with that as well. I think WFE is getting very close the point where they will have met all the requirements of the ASX to be able to be relisted.
It has indeed been a long journey for shareholders but it should be an interesting company to watch once it finally starts operations. No bold predictions from me but I am optimistic. This can work and work well if all parties are up to the task.
Chrs W2
