China’s Covec to Invest in DRC copperCovec owns the Luisha and...

China’s Covec to Invest in DRC copper

Covec owns the Luisha and MKM mines
China Overseas Engineering Corporation (Covec), will invest $300 million in two copper and cobalt mining projects in the Democratic Republic of the Congo, said Min Guowei, the company`s vice-president.

Covec, a unit of China Railway Engineering Group, China`s biggest construction company by revenue, plans to produce 20,000 t of copper and 1,500 t of cobalt annually by 2009. The company will also build a copper refinery in the central African country.

"China is the second-biggest country for copper demand," Min said. "It needs 3 Mt every year, but it only produces 500,000 t."

The Democratic Republic of the Congo, which last year held its first free elections in four decades, is trying to revive its mining industry after a civil war and years of underinvestment by the government.

Increased stability in the country is luring investors such as AngloGold Ashanti Ltd, Phelps Dodge Corp. and De Beers to develop reserves of minerals including gold, diamonds and tantalum.

Covec owns the Luisha and MKM mines in Congo`s copper belt in the southern Katanga Province, which contains a tenth of the world`s copper reserves and a third of its cobalt.

The company owns 72% of Luisha project and 74% of MKM. Gecamines, Congo`s state-owned copper and cobalt mining company, holds 28% and 16% stakes in the projects, respectively.

Covec has been operating in Africa since the 1960s and has been investing in the continent`s mineral industry since 2005, Min added.

(March 27 Bloomberg)

Report:

Democratic Republic of Congo - 2006