First Quantum says DRC imposes 'conditions' to allow KMT to continue
AFX
LONDON (Thomson Financial) - First Quantum Minerals Ltd said a review by the Democratic Republic of Congo regarding the Kolwezi tailings project has imposed 'conditions' to allow Kingamyambo Musonoi Tailings Sarl (KMT) to continue mining.
It said the Congolese government has requested the termination of this contract, but the partnership can be maintained, provided there is regularisation in incorporating the company in conformance to Congolese law on commercial companies.
Other conditions include proposing a schedule of the social actions which have a visible impact; making sure that partner La Generale Des Carrieres et Des Mines (Gecamines) has an active role in the day-to-day management of the company, and that a feasibility study of the project should be given to the government.
First Quantum added that the government has asked it to respect the terms of the initial tender offer and its implications, in particular the up-front payment.
In KMT, First Quantum owns 65 pct, Gecamines holds 12.5 pct, the Industrial Development Corporation of South Africa has 10 pct, the International Finance Corporation owns 7.5 pct and the the Government of the Democratic Republic of Congo holds 5 pct.
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