At least were in good company......
UPDATE: Anvil Mining Down 15% On Congo Cancelation Report
5 November 2007
Source: Dow Jones International News
SYDNEY (Dow Jones)--Sixty-one agreements to mine and explore minerals in Democratic Republic of Congo should be canceled or reviewed, according to a preliminary report from a government-appointed panel reviewing mining contracts, media reports said over the weekend.
Shares in dual-listed Anvil Mining Ltd. (AVM.AU), Congo's biggest copper producer, fell more than 15% on the Australian Stock Exchange Monday to a three-and-a-half-month low of A$17.40, before steadying at A$18.50, down A$2.50.
The panel recommends changes to 37 contracts that came under scrutiny, including global miner Freeport McMoRan Inc. (FCX), BHP Billiton Ltd. (BHP.AU), AngloGold Ashanti (ANG.JO) and Nikanor Plc (NKR.LN). The finalized version of the panel recommendations will be submitted Tuesday.
The remaining 24 agreements should be canceled, the report said, including Anvil's plan to produce 40,000 metric tons of copper this year and 100,000 tons by 2010 from its Dikulushi, Kulu and Kinsevere operations in Katanga province.
"We're not commenting on the report. This is the first we've heard about it (the cancellation). We want to work with the proper channels of communication with the government," said Robert LaValliere, Anvil's vice president of investor relations.
Following Congo's first democratic elections in more than four decades last year, the government set up a commission to scrutinize mining contracts forged during the 1998-2003 war and following transitional period.
Critics allege that many contracts are imbalanced, leaving little benefits to the impoverished central African state from its vast copper, gold, diamond, cobalt and other mineral resources.
BHP Billiton is exploring for copper and diamonds in the DRC, and last month announced it had entered into an agreement with the government to investigate building a US$3 billion aluminum smelter.
A BHP spokeswoman said the company's minerals exploration licenses had been concluded under the new legislation and one contract, with state diamond miner MIBA, was on the list of those under review.
"We have not been called to testify on this," said the spokeswoman.
The report also criticized Freeport McMoRan's contract to develop the giant copper Tenke Fungurume project for not following Congo's mining code, but didn't recommend cancellation.
Freeport acquired Tenke through its takeover of Phelps Dodge, and is due to start production of an initial 113,400 tons of copper and 8,165 tons of cobalt from 2009.
-By Elisabeth Behrmann
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