Good to have you back Miningnut. Maybe, but it was on low...

Good to have you back Miningnut. Maybe, but it was on low turnover and a wide spread. Thought the latest reported comments by Victor Kasongo might be of interest.

Congo Govt:Assessing Mining Review In Light Of Econ
By Andrea Hotter Source: DOW JONES NEWSWIRES

LONDON The Congo government is assessing the way forward for its mining license review, taking into account the impact of the global economic downturn on cash-strapped mining companies and balancing this with the country's needs, Congo's vice minister of mines told Dow Jones Newswires Thursday.

Junior miners in particular have been hit by slumping commodity prices on the back of a deteriorating demand environment, with several struggling to finance
projects, Victor Kasongo said.

"Mining is essential for our economy, so in the same way that we want to strengthen the capability of miners (to exploit) our vast reserves, we're not
giving up our right to share in the wealth they produce," he said.

Ministry and government discussions are ongoing at the moment, he said, with a decision "most likely" within the next fortnight.

The review of licenses has been ongoing for some time but there have been no fresh developments since the results were released in August.

At that time, 14 of the 61 mining companies in the license renegotiation process had satisfied all the Congo government's criteria. The others were still in negotiations, with 26 companies renegotiating their licenses and 21 miners facing the complete loss of their licenses.

Congo holds an estimated 10-15% of the world's copper reserves, with exploration expected to increase this figure to between 20% and 25%.

The rationale behind the review is to restore Congo's mining sector to its former glory. Katanga province, in Congo's southeast, in particular is potentially an economic dynamo. At their peak, its mines contributed 80% to the
country's gross domestic product, but output declined dramatically due to internal conflict and lack of reinvestment.

The situation has been different this decade, with booming commodity prices and the end to the civil war seeing the steady return of investment to the
sector. The government has been aiming to produce 500,000 metric tons a year of copper by 2011. But a decline in demand, falling copper prices and a lack of
financing for miners now means this target might be unrealistic.

However, Kasongo said he remains confident that demand for copper will revive, with miners unlikely to willingly relinquish their licenses or investment appetite in Congo.

"Congo is able to play host to high quality, low cost mines and miners will stay to fight for that, for the ability to make a huge margin on their production," he said. The unrest in Goma, capital of eastern North Kivu
province, hasn't affected investment, while Congo hasn't suffered by comparison to its more stable neighbor, Zambia, he said.

A huge $9.25 billion deal with China hasn't been affected by the economic downturn, Kasongo said; in fact, Chinese engineers are conducting feasibility studies into a number of infrastructure projects. These include airportrehabilitation and a roads program in Kinshasa and Katanga.

Around $6 billion of the loan is earmarked for infrastructure and $3.25 billion is to be used in mining investment. Negotiations agreement between the
two countries began in August 2007 and culminated in a cooperation agreement signed April 22.

"We're also looking to sell more products into China and to get our cobalt mines up and running again," Kasongo said.