Here we go - just a matter of weeks now. . . . .
ohannesburg, Aug. 4 (Bloomberg) -- America Mineral Fields Inc. and Anglo American Corp. said the Democratic Republic of Congo government will decide within 30 days whether to award them rights to develop a copper and cobalt project.
America Mineral Fields said in a statement its Congo Mineral Developments Ltd. joint venture with South Africa's Anglo has started final negotiations with the DRC on the development of the Kolwezi cobalt and copper tailings project.
If developed, the project could become the biggest cobalt producer in the world with an output of 6,000 metric tons a year. Current world production is 20,000 tons while the world's biggest producer at present, Zambia Consolidated Copper Mines Ltd., produces 3,500 tons.
''Pursuant to a comprehensive meeting with President Laurent Desire Kabila and cabinet members, a special government committee has been appointed by the president to conclude final negotiations within 30 days,'' said America Mineral Fields' chairman, Bernard Vavala, in a statement.
America Mineral Fields said fighting between ethnic Tutsi members of the national army and troops loyal to President Kabila and a declaration of a revolt by sections of the army in the eastern province of Kivu over the last two days would not affect the company's plans.
''It's my understanding that there haven't been any shots fired in Kinshasa for the last 24 hours,'' said America Mineral spokesman Earl Young. ''We are dealing with the government as we see it. We have the greatest confidence in President Kabila.''
Anglo American also said its plans to develop mineral resources in the DRC are yet to be influenced by the fighting.
''It's still early days and we are keeping a close watch on the situation there,'' said spokeswoman Glen Finnegan. There have been reports of fighting in the capital and the east, ''nothing in the south east'' where Kolwezi is located, she said.
Analysts agreed with the companies assessment. ''It's a minor flare up, it's almost immaterial,'' said John Clemmow, an analyst with Investec Securities in London.
Clemmow said the announcement by America Mineral Fields wasn't unexpected and would have little immediate impact on the cobalt price.
The signing of the joint venture agreement between Anglo and America Mineral Fields in June ''makes it (the awarding of the project to the joint venture) a bit of a foregone conclusion,'' he said.
The two companies were the top contenders for the project before the joint venture was signed and the agreement resolved a dispute that led America Mineral Fields to file a lawsuit against Anglo in January after the DRC canceled an agreement it had with the Texas-based company. America Mineral Fields claimed that Anglo undermined its position. The lawsuit was dropped in March.
Analysts have previously said the joint venture could generate a cash flow of $180 million a year. Development costs are estimated at $300 million.
Anglo American rose 2 rand to 207 rand while America Mineral Fields, which trades in Canada, rose 10 cents to C$3.50.
12:22:58 08/04/1998
Jill |
