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Gold/Mining/Energy : Tenke Mining Corp (TNK) -- Ignore unavailable to you. Want to Upgrade?

To: Greywolf who wrote (280)	11/25/1998 2:16:00 PM
From: Greywolf	Read Replies (1) \| Respond to of 486

All regional Africa eyes on DR Congo: let the competition begin! There is a great deal of attention being paid to the aggressive moves by regional entities allied with the DR Congo into the multi-faceted markets of the DR Congo. The Zimbabwe Independent reported that Zimbabwean generals, politicians and the ruling Zanu PF political party have invested an estimated $47 million in minerals, timber and retail deals in the DR Congo in recent months. In addition, the paper reported that the Zimbabwe Defense Industry (ZDI) has supplied $53 million in military supplies to the Kabila government. The paper also said that First Banking Corp., a Zimbabwean bank with links to the ruling party, is facilitating trade with the Congo and will soon open a branch in Kinshasa. The Independent pointed out further that Zimbabwean, Billy Rautenbach, has recently been appointed chairman and chief executive of the Congo's state-owned mining company, Gecamines. His company, Ridgepointe, has recently secured a vast new minerals concession known as "Groupe Centre," and he was granted in January 1998 a mining concession at Kabambankola near Likasi in southeastern Congo. This mine is said to be producing about $6 million worth of cobalt per month. Furthermore, the Zimbabwe Independent reported that Rautenbach's company, Ridgepointe Overseas Development Ltd., will hold 80% of Groupe Centre, which is a central group of mines belonging to Gecamines. The DR Congo government reportedly will hold only 20% of the group. The deal was reportedly signed by Victor Mpoyo, a minister of state in President Kabila's office. Interestingly, Donna Block reported for Mail & Guardian that South African companies are also flocking to the DR Congo, war or no war, to get in the competition for the country's mineral resources. The mining companies say they have no politics, simply wanting to do business and able to work with whomever is in power. Block says that this round of the "scramble for Central Africa's vast natural wealth is underway (and) unlike earlier attempts when Europeans and Americans rumbled for the spoils, Africans are leading the charge." Block says companies from Angola, Zimbabwe, Namibia and South Africa are all scurrying to the Congo at the head of what Block calls the "grab-pack," while "companies from other countries are also trying to snap up table scraps." Marius Bosch reported for Reuters that talk has emerged of deals between a company controlled by Namibian President Nujoma's brother-in-law and the Congolese state diamond concern, MIBA. In addition, Bosch reported that Angola's state-owned oil company SONANGOL has won exploration rights in the DR Congo and the right to distribute fuel in the Congo. Barry Sergeant, a securities analyst with BOE Securities in Johannesburg, was quoted saying, "There is big trouble there. There is daily slaughter going on, there are (foreign) forces all over and the common denominator is money." Block says that Zimbabwe has been spreading the rumor that South African companies are not welcome in the DR Congo. Indeed Pretoria diplomats are spreading the word that DR Congo's State Minister Mpoyo, who himself is more of a businessman than a government minister, is saying that South African companies are not welcome in the Congo. Block points out, however, that Iscor has cut a deal for a copper and cobalt mine in Katanga, and mining company Anglo American, transportation company Manica and railway company Spoornet are moving ahead with the business plans in the Congo, regardless of what Mpoyo is or is not doing to discourage South African companies. The feeling in South Africa is that eventually the Congolese will have to come to them because they have more scarce capital than do the Zimbabweans and Congolese. As a general rule, however, American companies are staying away, seeing the risks as too high, content to allow a few waves to roll in and out first. There are always those who feel they need to get in the action first, but there is a body of business knowledge that says to be patient and come in later, after the dust settles, and after the first few waves of companies have suffered defeat.