under the radar, page-7

There will be no problems for LIN, the DRC wants to have one unique percentage for every contract they had made with foreign companies.


See also:

DRC mines review good for coporate governance - Mark Smith, RBC

In an interview on Radio 2000 @ 18:20 on 2 April 2007

[miningmx.com] -- A halt on new mining transaction talks in the Democratic Republic of Congo pending a review of existing contracts is aimed at improving corporate governance and setting a base for an anticipated flood of foreign investment, said Mark Smith from RBC Capital Markets.

"The minister ... instructs state administrators of the mining sector to suspend until fresh instructions all negotiation on new partnerships until after the government has launched a review procedure for existing contracts," Minister Martin Kabwelulu said in a March 27 memo seen by Reuters.

Paperwork on all existing partnerships has to be sent to the minister by 4 April under penalty of severe sanctions, which could include the revoking of contracts.

"I look at this contractual review as important and it is a process of improving corporate governance and transparency," Smith said on the Moneyweb Power Hour broadcast on Radio 2000.

"With the mineral wealth in the DRC, there will be a lot more exploration and investment into the region. A lot of the new titles that will be issued will have to be issued on the benchmark of historical agreements," he said.

"Under licences that have been issued and many of the major copper companies which are in production or will shortly be in production don't have an issue to worry about about," he said, adding a sentence in the memo said no existing contracts would be anulled.

The mining code implemented in June 2003 was drawn up by the United Nations on behalf of the mines ministry, he said.

"Some issues for renegotiation may be more soft issues around title and focus on social issues," he said. "My take on the process is that we've seen a step up in the increased diligence from the ministries in the DRC."

http://www.miningmx.com/radio/742179.htm