announcement

Anvil Mining: No Contact With Congo Govt About Contracts

5 November 2007

Source: Dow Jones International News

SYDNEY (Dow Jones)--Australia and Toronto-listed copper producer Anvil Mining Ltd. (AVM.AU) said Monday it has had no contact with relevant government bodies in the Democratic Republic of Congo about a review recommending cancelation and renegotiation of mining rights.

In a response to an Australian Stock Exchange query triggered by a share price fall of 15%, Anvil said it was aware of media reports over the weekend that a DRC government-appointed commission reviewing mining contracts will recommend that 61 contracts, including Anvil's, be renegotiated or canceled.

"Anvil confirmed that it has received no written communication from the minister of mines or the commission (or any other government body in the DRC) in respect on renegotiation of termination of any agreement to which Anvil or any of its subsidiaries is a party," the company said in a statement.

Anvil plans to produce 40,000 metric tons of copper this year and 100,000 tons by 2010 from its Dikulushi, Kulu and Kinsevere operations in Katanga province in the DRC.

"Anvil understands that the commission is to report to the minister of mines and that the commission is mandated to issue recommendations only and does not appear to have the power itself to renegotiate or terminate any contract," it said.

Other miners active in DRC include Freeport McMoRan Inc., BHP Billiton Ltd., AngloGold Ashanti and Nikanor PLC.

At 0450 GMT, Anvil shares were down A$2.50, or 12%, at A$18.50.

-By Elisabeth Behrmann,