Congo Miners Look To Launch Association By 2007 - Co October 6,...

Congo Miners Look To Launch Association By 2007 - Co

October 6, 2006: 8:57 a.m. EST


LONDON -(Dow Jones)- Exchange-listed mining companies active in the Democratic Republic of Congo are looking to establish a mining association from 2007 to represent their industry to Congo's government, a spokesman for Anvil Mining Ltd. said Friday.

"We want to set up a body similar to Canada or South Africa to lobby central government and provincial government in Congo," Investor Relations Manager Robert LaValliere said.

"To become a member of the association a company needs to be publicly traded on a qualified stock exchange. That's the most important criteria," LaValliere said. "We started discussions last August and look to start in 2007."

Congo's mineral riches - the country has significant copper, cobalt, zinc, uranium and gold reserves, have attracted many junior and mid-tier miners since civil war ended in 2003.

Other mining companies active in Congo include U.S.-based Phelps Dodge Corp. ( PD), Metorex Ltd. (MTX.JO) and Kumba Resources Ltd. (KMB.JO).

Growing political stability, a new mining code drawn up together with the World Bank and record metal prices have seen investment into Congo's mining sector grow strongly.

However, many development organizations call for greater transparency in some mining companies' joint ventures with Congo's state miner Gecamines.

"I think one needs to distinguish between old and new companies, private and public companies active in Congo. Publicly traded companies such have provide a high degree of transparency," LaValliere said.

"I think NGOs (non-governmental organizations) are right to pressure miners to subscribe to the criteria of the EITI initiative," he added, referring to the Extractive Industries Transparency Initiative, an alliance between countries, companies and NGOs with mining interests.