congo review

Sounds good for AVM.


http://www.bloomberg.com/apps/news?pid=20601116&sid=a5mA_y3SK79w&refer=africa


Congo Wants Majority Stake in Mine Contracts Without Studies

By Franz Wild

Aug. 28 (Bloomberg) -- The Democratic Republic of Congo, which is conducting a review of mining contracts, will seek a majority stake in projects that haven't submitted feasibility studies to the Mines Ministry.

At least sixteen of the 61 contracts being reappraised by the government have provided project proposals, Gaby Matshafu, deputy Chief of Staff at the ministry, said in an interview in the capital, Kinshasa. The government will today announce the terms of reference on which agreements with mining companies are to be renegotiated, he said.

``We said we want 51 percent for all those without a feasibility study,'' Matshafu said late yesterday. ``Where there's already a functioning operation, we're not going to push in and disturb things.''

Congo, which has a third of the world's cobalt and 4 percent of all copper, is seeking to boost revenue from mining by improving the terms of contracts with mining companies in the government's favor. Deals being scrutinized include those with Freeport McMoRan Copper & Gold Inc., the largest publicly traded copper producer, and AngloGold Ashanti Ltd., Africa's biggest gold miner.

Companies that have submitted feasibility studies to the Mines Ministry include Phoenix-based Freeport, Katanga Mining Ltd. of Canada and Australia's Anvil Mining Ltd. and Moto Goldmines Ltd., Matshafu said. Those agreements will remain largely unchanged, he said.