Anvil Mining Not Worried About Congo Licensing Review - CFO5...

Anvil Mining Not Worried About Congo Licensing Review - CFO

5 October 2007

Source: Dow Jones Asian Equities Report

LONDON (Dow Jones)--Copper producer Anvil Mining Ltd. (AVM.T) plans to double annual copper production to 110,000 metric tons by 2010 at its Congo projects and doesn't anticipate any problems from the mine license review currently underway in the country, its chief financial officer, Craig Munro, said Friday.

Speaking at the 20:20 Investor Series seminar in London, Munro said he didn't expect any changes to operations despite new mine license reviews going on in the country.

"The license review is taking longer than people expected," Munro said, adding "some things could do with a little scrutiny."

"But reputable producers don't have concerns," he said. "I think it's a good process."

Anvil's mines have undergone three other license reviews in the past, Munro said. He added it's a natural process expected from a new government and that a fourth license review is expected to take place soon.

"But we don't see any change in operations," Munro said.

A series of government initiatives is now underway in Congo, including a wholesale review of mining licenses and changes in the fee structure for holding permits to enhance the mining industry in the country, Victor Kasongo, the country's vice-minister of mines has said.

The measures have come under fire from some investors, who say the government has given little thought to the possible repercussions of changes to the mining licenses. As well as leaving smaller firms facing bankruptcy, this could trigger the exodus of other investors from Congo and deter others from coming to the country.

But Anvil is confident in its growth projections.

The company recently commissioned its third mine in Congo, the Kinsevere venture, which is expected to produce around 23,000 metric tons of copper per year. It has also approved a $238-million expansion of the mine, part of its forecast to double copper production to 100,000 tons a year by 2010.

The company plans to begin underground drilling in the fourth quarter at its main operation, the Dikulushi mine. Munro said there is still a lot of development to be done in the Katanga province.

At the peak of mining in the Congo, the Katanga province mines contributed 80% to the country's gross domestic product, but output declined dramatically due to internal conflict and lack of reinvestment.

Anvil has been in the Congo since 1996, Munro said.