Rebels not seen keeping investors away from Zaire
(This is just as applicable to ILP. RS)
Reuters Story - February 07, 1997 12:24
By Lynda Loxton
CAPE TOWN, Feb 7 (Reuter) - Zaire's deputy premier Banza Mukalayi assured international mining companies on Friday that rebel activity in the east was not deterring operations in the country's mineral-rich Shaba province.
Mukalayi, also minister of mines, told the "Investing in African Mining" conference that more and more companies were returning to Zaire after years of neglect -- spurred by promises of democratic elections and favourable investment packages.
The government had embarked on a drive to form partnerships with foreign companies with the aim of rehabilitating mine infrastructure, building new mines and resuming prospecting and mining development, he said.
"The positive consequences of this policy have translated into an increase of private investment in the mining sector."
Mukalayi told the conference that recent investors had included Barrick Gold Corp and Canada's Caledonian Mining Corporation.
Tenke Mining Corporation president Ted Webb earlier told delegates a joint venture between state-owned Gecamines and Swiss-based Group Lundin was going full-steam ahead to exploit 222 million tonnes of proven cobalt/copper reserves in Shaba.
"What we have here is a first class project that we can fast-track because of all the past work that has been done," Webb said.
The Tenke Fungurume mine was first developed by a consortium in the 1970s but was abandoned in 1978. It has easy access to roads, railway lines, electricity and water. Because of this, initial plans to produce 100,000 tonnes of copper and 8,000 tonnes of cobalt was expected to cost only $340 million.
A further $300 million will now be spent over the next few years to increase production to 400,000-500,000 tonnes.
Webb said the first feasibility study should be complete by March or April next year, with production expected to be on stream by 2000.
Commenting on the possible effects of rebel activity, Webb said the mine was 730 km (456 miles) from rebel strongholds and used southern transport routes through Zimbabwe, Mozambique and South Africa.
"We are monitoring the position but we are reasonably confident," Webb said.
Mukalayi acknowledged Zaire's mining sector had seen a dramatic fall in production mainly because of the deterioration of machinery, interruption of financing by key donor agencies and slowdown of prospecting and development.
He also admitted that the turbulent politics of the central African country and the lack of firm policies on joint ventures had played a role in deterring investment.
"It is unfortunate, though, that Zaire is still perceived by some experts as a high-risk country, certainly because of a long (political) transitional period," Mukalayi said.
Encouraging mining companies to consider the value-added production of downstream items as well as mining activities in Zaire, he added:
"But I can guarantee that we are committed irreversibly to democratisation and this will materialise through the organisation of free democratic elections with the help of the international community.
"As for the cowardly (rebel) aggression we are being subjected to, the Zairean government is committed to put a term (end) to it whatever the costs."
-- Lynda Loxton, Cape Town newsroom +27 21 25-2238 |
