Hi Ravi,
I think this is the article:
By Marius Bosch
GRAND BAIE, Mauritius, June 16 (Reuter) - The new Democratic Republic of the Congo said on Monday it would not allow mining monopolies to operate in the mineral-rich former Zaire.
President Laurent Kabila's Mines Minister, Florent Kambale Kabila Mututulo, told reporters ahead of a sub-Saharan Oil and Minerals conference that some companies monopolised the mining industry under the previous government of Mobutu Sese Seko.
``One thing that we don't want is a monopoly, that is why there is a clash between De Beers (Consolidated Mines Ltd) (DBRS.J)) and the government,'' Mututulo said.
De Beers held a contract with the former government to buy up production from Societe de Miniere de Bakwanga (MIBA), but Kabila's government said before seizing control of the Central
African country last month that it wanted to re-negotiate existing ontracts.
De Beers -- which controls the world's diamond industry through the London-based Central Selling Organisation -- has since re-opened its diamond buying office in the diamond capital Mbuji-Mayi but faces competition from several other diamond buying companies.
Mututulo said the government would only allow foreign companies to continue their operations if it fell in the government's guidelines.
``If they are in the guidelines of our government, we allow them to keep on working. If there is something wrong, we negotiate some terms of the agreement,'' he said.
The new mines minister indicated that the country was keen to do business and assist the development of its huge mineral resources -- which has been left unexplored during decades of rule under Mobutu.
Analysts say Zaire holds large reserves of untapped mineral wealth in copper, cobalt, diamonds and gold and is one of the richest potential resource areas in the world.
Mututulo said Kabila's government had discovered anomolies in mining concessions handed out by Mobutu's government.
``We really discovered very funny things. Giving a company a country the size of France,'' he said without elaborating.
The three-day Oils and Minerals conference is due to start on Tuesday.
My understanding is that the ILP contracts have been ratified and that they have a very good relation with the present government.
I don't know what to make of the recent fall in the price.
John |
