Zijin Expects Congo Deal To Go Through

Approval for Platmin Deal Expected In Weeks

China’s largest gold producer, Zijin Mining Group Co., has said that it expects the governments of the Democratic Republic of Congo and China to approve its joint $284 million bid to buy copper mine developer Platmin Congo.

Zijin is looking to buy Platmin Congo along with the state-backed China-Africa Development Fund. Platmin has stakes in two copper-cobalt projects.

Vice Chairman Lan Fusheng told reporters in Shanghai that China is expected to nod through the deal next month although agreement from the Congo government is expected to take a little longer. The deal will go through once a “misunderstanding” is resolved.

“I believe this will eventually receive approval from the Congo government because the project needs investment,” Mr Lan said.

Alexis Mikandji Penge, Chief of Staff to Congo’s Ministry of Mining, pointed to a decision by the Congolese government last August which prohibits a partner in a joint mining venture in Congo to change the partnership or transfer shares before the project begins commercial production. It is believed that the country’s Minister of Mines, Martin Kabwelulu apparently learned of the proposed deal over the internet.

The state-owned mining company, Gecamines, has a 32 per cent stake in Platmin’s projects, Deziwa and Ecaille C. Zijin will own 60 per cent of the venture controlling Platmin with the China-Africa Development Fund holding the remaining 40 per cent. The $1 billion fund aims to support Chinese companies investing in Africa. It is believed that the fund initially got involved in the project and sought investment from Zijin to take over the development.

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Macquaries Predicts Cobalt Surplus

Macquarie Commodities Research is forecasting a medium term for cobalt, in its latest report.

Analysts at the investment bank are predicting that a 10 % increase in supply will outstrip a 9% growth in demand over the next couple of years and that the price will drop from $22.50/lb this year to $20/lb next year and $15 in 2012 thanks to expanded output from Australia, Canada and Africa.

Growth is likely to be underpinned by the automotive battery sector which accounts for about a quarter of demand; however the bank also points out that with cobalt being a secondary product from copper or nickel mines demand has remained insensitive to price.

Macquarie also points to volatility in the price of cobalt, especially as the London Metal Exchange recently launched a cobalt futures contract and contracts exchanged on the market are more likely to be sensitive to market developments.

Anvil Sells Stake In Congo Copper-Silver Project

Canada's Anvil Mining Ltd is to sell its 90 per cent interest in the Dikulushi copper-silver mine in the Democratic Republic of Congo (DRC) to Australia's Mawson West Ltd. In return Anvil will receive a 28 percent stake in the junior miner.

The company said it is focused on larger copper projects in the DRC, in particular the copper mine project Kinsevere Stage II in Congo which is expected to yield 60,000 tonnes per year of cathode copper and is expected to begin commissioning during the first quarter of 2011. The Company plans to carry out further drilling at Kinsevere during 2010 and is investigating expansion opportunities with attractive synergies for the Kinsevere operation with the possibility of extending the processing life of the project.

The Dikulushi copper-silver mine was placed on care and maintenance in the fourth quarter of 2008 due to weaker commodity prices.

Lundin Reports Increase In Copper Reserves

Lundin Mining Corporation has reported an increase of 44 per cent in the copper reserve at its Neves-Corvo copper mine in Portugal as at December 31, 2009.

The company reported measured and indicated copper resources of approximately 160,000 tonnes of contained copper, a figure roughly equivalent to two years of production.

At Tenke Fungurume in the Democratic Republic of Congo – in which Lundin owns a stake of 24.75% and which is operated by Freeport-McMoRan Copper & Gold - exploration during the 2009 calendar year has resulted in an increase in proven and probable reserves, Lundin’s share of which is 1.1 million tonnes of contained copper. Lundin's share of the Tenke cobalt reserves are reported to be 444,000 tonnes.


Lundin also reported proven and probable reserves of 2.1 million tonnes of copper, 4.9 million tonnes of zinc, 1.4 million tonnes of lead, 169 million ounces of silver, 48,000 tonnes of nickel and 110 tonnes of cobalt.


Total Lundin measured and indicated mineral resources were reported at 3.9 million tonnes of copper, 6.9 million tonnes of zinc, 2 million tonnes of lead, 261 million ounces of silver, 75 tonnes of nickel, and 231 million tonnes of cobalt.

President and CEO, Phil Wright, said "Our goal this past year was to increase copper resources at Neves-Corvo and the increases we have seen continue to justify this on-going investment, and our belief that Neves-Corvo remains under-explored. Equally pleasing is the growth of the mineral reserves at Tenke and the significant increase in the contained copper and cobalt in reserves,"
Lundin’s quarterly results are due to be released on Thursday of this week.

Congo Lifts Copper Export Ban On 16 Companies

Authorities in the Katanga province, Congo's main copper-producing region lifted a copper export ban on 16 companies following a meeting with the provincial governor on Friday.

An official with Congo's state mining company, Gecamines, said that companies have pledged to honour their promise to support corn-growing projects in the province including planting at least 500 hectares of corn each.
"The governor has lifted the ban and the affected companies can now export copper without restrictions," he said.

The ban was announced last week.

DRC Block Mining Exports of 16 Companies

Officials in Katanga province in the Democratic Republic Of Congo have informed Retuers that they are carrying out a promise to block the exports of miners who are deemed not to have backed local agricultural projects.

Sixteen companies are said to have been banned, among them Kamoto Copper Company, a joint venture between TSE-listed Katanga Mining and the DRC government which runs the Kamoto copper and cobalt project near the town of Kolwezi.

African Rainbow To Boost Production At Khumani Iron Ore Mine

African Rainbow Minerals CEO Andre Wilkens said on Tuesday that the company is on track to boost production at its Khumani iron ore mine in South Africa by 2012.

Speaking to Reuters on the sidelines of the Mining Indaba conference in South Africa Mr Wilkens said "We are certainly on track for the first phase and the second phase (expansion) and see full production at the end of the year 2012, from 10 million tonnes per annum to 16 (mtpa),".

ARM has formed a joint venture with Vale to explore for copper in Zambia, and other minerals in the Democratic Republic of Congo, Namibia and Mozambique. Mr Wilkens said that the JV would be also be looking specifically at platinum in Zimbabwe.

Meteorex Sees Higher Copper Output From Congo Mine

Reuters quotes South African miner Metorex as saying that its Ruashi mine in the Democratic Republic of Congo could produce 36,000 tonnes copper per year and up to 5,000 tonnes of cobalt in the long term.

Metorex said in a statement that the mine produced 2,512 tonnes of copper and 274 tonnes of cobalt in October up from 2,345 tonnes of copper and 272 tonnes of cobalt in the previous month.

Mr Terence Goodlace CEO of Metorex said that metal production was expected to be 20,000 tonnes of copper cathode and 1,756 tonnes of contained cobalt for the 8 months to June 2010 at its Ruashi mine.

Metorex, which also operates the Chibuluma copper mine in Zambia and is selling its stake in a fluorspar mine in South Africa, said that increases in copper and cobalt prices drove revenues higher. The company said that the total costs had reduced to USD 2,800 per tonne of copper produced and improved efficiencies was expected to result in a further reduction in costs. It said that mining costs were expected to rise at Ruashi due to increased stripping requirement at one of the pits.

The company said that it would investigate further opportunities to mine for copper and enhance processing at its open pit and underground mines. The planned sale of 55% stake in the Vergenoeg flourspar mine in South Africa for USD 60 million was on track for completion during December 2009.

Source: Steel Guru

Congo Holds Key To Freeport Project

The massive copper and cobalt mine Tenke Fungurume is more than 9,000 miles from Arizona, but key decisions about the new operation's future in central Africa are being made in Phoenix.

Tenke is operated and majority-owned by Freeport-McMoRan Copper & Gold Inc., which runs its $17.8 billion-a-year global enterprise from its headquarters in a downtown office high-rise at 1 N. Central Ave.

The mine is located in the economically unstable Democratic Republic of Congo, making it a risky venture for the world's largest publicly traded copper company.
The country is rife with political and social unrest, and transportation routes for hauling equipment and minerals to and from the $2 billion project are scarce. A review of mining contracts by the African government also threatens Freeport's ownership stake.

But the potential payoffs are huge.

Freeport executives and mining analysts say Tenke possesses the largest copper-ore reserve in the world.

While the global economic crisis temporarily squelched demand for copper and drove down the price of the metal last year, demand is expected to explode as countries such as China and India expand and worldwide supply remains constrained.

"Tenke Fungurume is one of the most attractive new copper projects in the world over the last two decades," Peter Ward, a stock analyst with Barclays Capital in New York, wrote in an October report on Freeport.

Ward, who recently toured the mine, estimates future demand for the metal will be strong enough to support 35 additional copper mines the size of Tenke.

Freeport began shipping copper cathode in March. The mine has produced 90 million pounds of copper and is expected to yield 250 million pounds of copper and 18 million pounds of cobalt annually at full production.

Freeport is well-versed in doing business in unstable regions of the world.

For more than 30 years, it has operated the Grasberg copper and gold mine in Indonesia. The area surrounding Grasberg in the remote, mountainous area of Indonesia's Papua province has been the site of a several violent attacks by political separatists in recent months.

Some experts say Congolese officials' contract review of the Tenke mine could hinder the value of the project.

The DRC, which is financially dependent on mineral exports, launched the review of several mining contracts in 2007 to determine whether they were negotiated fairly. It has completed most of its reviews except for a few, including Freeport's.

Freeport President Richard Adkerson was not available for comment.

In an Oct. 21 conference call with analysts, Adkerson said the company was "working very cooperatively" to address the government's concerns. He said the firm made offers to the government but declined to specify.

Adkerson called the company's current contract, in place since 2005, "very favorable" to the government.

Freeport owns about a 58 percent stake in Tenke. Canadian mining firm Lundin Mining Corp. owns about 25 percent. The DRC owns about 18 percent and is entitled to 2 percent of the royalties and 30 percent of the taxes.

It reportedly is asking to increase its ownership stake to 45 percent, Ward's report said.

It is possible the government could ask Freeport to make a larger social investment in the country, Ward said.

Freeport and Lundin have invested $1.9 billion in the project thus far, including about $180 million in taxes to the government; $30 million for housing, education and other community-development programs; and $20 million for national highway improvements.

Significant contract revisions or a cancellation could scare away investors, hurting the financially burdened country, said Olufemi Babarinde, associate professor of global studies at Thunderbird School of Global Management in Glendale. He studies African business issues.

Gerry Keim, a management professor at Arizona State University's W.P. Carey School of Business in Tempe, agreed, adding that the DRC runs the risk of deterring future business investments there.

But he doubts whether that would prevent the government from taking a bigger stake in the project.

"There may be short-term benefits to the government in power if they are able to renegotiate a contract like this and get a bigger slice of the pie," Keim said. "The long-term costs are usually going to be borne by people who are not in power right now."

Freeport said it has no timeline on when a decision will be made.

But news agencies reported that the government gave Freeport several deadlines to reach an agreement. Those deadlines, including two in October, have passed without action.

Source: Arizona Republic

ENRC, CAMEC In Merger Talks

Eurasian Natural Resources Corp. PLC Wednesday said it is in "advanced discussions" to pay 20 pence a share for Central African Mining and Exploration Corp. PLC.
However, ENRC cautioned that a deal hadn't yet been finalized: "Whilst ENRC is engaged in such discussions and is assessing the merits of a potential transaction, there can be no certainty that any such transaction will proceed," the company said in a statement.

London-listed ENRC produces ferrochrome, iron ore and aluminium at operations in Kazakhstan, while CAMEC's main operations are copper and cobalt production in Congo.

Source: Trading Markets

Vale Behind Camec Approach

Camec, which is listed on London's Alternative Investment Market, announced 10 days ago that it had received bid approaches but declined to reveal who was behind them. The interest followed a recent deal struck by the company to supply all the cobalt from its mines in the Democratic Republic of Congo (DRC) to Zhejiang Galico, a Chinese cobalt processor, controlled by a company registered in the British Virgin Islands.

Vale recently opened an office in the DRC and has been eyeing Camec's operations for some time, said the insiders.

In particular there was a suggestion that Vale could team up with Xstrata and make a joint bid for Anglo American. However, Vale poured cold water on the idea by saying it would use the cash to fund its own projects.

Insiders said yesterday that Vale was interested in Camec but gave warning that the deal still may not come off.

Other parties are also said to be interested, including the Chinese. Vedanta Resources may be also be interested in Camec's copper. Vale declined to comment. Camec could not be reached.

At the time of the approaches Camec gave warning that they were preliminary approaches that may or may not lead to an offer being made for the company. Camec's shares have soared from 10p to 15½p as a result of the bid speculation.

Camec has operations in Mozambique, Zimbabwe, South Africa, Mali, Namibia and Kenya. Mr Edmonds, who was born in what was then Northern Rhodesia, played for England from 1975 and 1987.

He has become well-known as a mining entrepreneur in Africa having also established the White Nile Petroleum Company.

Source: Daily Telegraph

Ruashi Mine Achieves Record Copper, Cobalt Production

South Africa-based Metorex’s Ruashi mine, in the Democratic Republic of Congo (DRC), has achieved record copper and cobalt production last month, the company said on Monday.

Copper output surged by 21% to 1 847 t and cobalt production by 33% to 214 t in May.

“The Ruashi mine continues to improve throughput and production levels and in May achieved its highest production levels to date,” said CEO Terence Goodlace in a statement.

He reported that significant progress had been made to improve plant throughput. Total mill feed amounted to 81 400 t at a blended grade of 2,61% copper and 0,48% cobalt in May.

Meanwhile, Metorex said that its board had approved $7,4-million to complete the acid plant at the mine.

The company had completed a study on sulphuric acid supply and concluded that a fully operational plant would reduce operational risk and reduce the cost of importing sulphuric acid from the Zambian copperbelt.

Contractors were being mobilised and the outstanding work should be completed in the second quarter of 2010, Metorex reported.

The company said last year that it planned to quadruple copper output by 2011, producing 135 000 t/y.

Commenting on the progress of its drilling programme at Ruashi, Goodlace said that the programme had advanced as planned and that the diamond drilling assays had delivered positive results.

Metorex started an infill drilling diamond programme at Ruashi in April, which would be completed by the end of the month.

By the end of May, 4 829 m of the 5 160 m programme had been completed.

Source: Mining Weekly

No Plans To Alter $9Bn Chinese Deal With DRC

China has no plans to change a $9 billion investment accord with the Democratic Republic of Congo, after the International Monetary Fund threatened to withhold debt relief unless it is altered.

“For the moment, it’s advancing very, very well, there is no problem,” Chinese ambassador Wu Zexian told reporters today in the capital, Kinshasa, when asked whether the accord would be changed.

The deal, signed last year, gives China’s state-owned Sinohydro Corp. and China Railway Engineering Corp. rights over deposits containing more than 10 million metric tons of copper and 600,000 tons of cobalt. In exchange, they will help President Joseph Kabila deliver on his 2006 election pledges by building roads, railways, hospitals, schools and universities worth $6 billion and investing a further $3 billion in the mining project.

IMF Managing Director Dominique Strauss-Kahn said last week Congo wouldn’t receive $10 billion in debt relief and a further $500 million in financial support until the agreement is changed. The accord adds to Congo’s national debt because the contract states that the country is the guarantor of the full amount if the deal fails, the Washington-based lender says.

The dispute marks the first time the IMF has been in a position to try and influence China’s investments in Africa, said Gregory Mthembu-Salter of the South African Institute of International Affairs. Similar deals have been done with Angola and Nigeria, both oil-producing nations that are less dependent on aid money, he said.

“I think it’s pretty significant internationally,” Mthembu-Salter said in a phone interview from Cape Town. “It’s a confrontation between the Western donors and China in Congo. The fall guy in this will be the Congolese who don’t get debt relief.”

Congo, a Central African nation the size of Western Europe, needs financial aid to help rebuild an economy destroyed by two civil wars between 1996 and 2003. The country has 4 percent of the world’s copper reserves and the largest cobalt deposits.

In 2008, the copper price dropped 55 percent, the most since 1987, as recessions in the U.S., Europe and Asia reduced demand for industrial metals. The price has risen 64 percent so far this year and was trading at $5,035 a metric ton by 2:40 p.m. on the London Metal Exchange today.

Mining accounts for 14 percent of Congo’s economic output, according to the African Development Bank’s Web site. Last year, 300,000 miners were put out of work after 40 companies closed their doors in the southeastern Katanga province.

Economic growth in Congo is expected to slow to 2.7 percent this year, from 6 percent in 2008, according to the IMF. The government also plans to reduce the annual budget from 2.9 trillion Congolese francs ($3.6 billion), Prime Minister Adolphe Muzito said on May 25, without saying by how much.

The country faces a $360 million interest payment this year on its outstanding debt, which stands at about $11 billion, according to the IMF.

Wu said the agreement creates no new debt for Congo because the Export-Import Bank of China, which is funding the deal, is taking the risk.

The IMF says “it’s a problem and I say it’s not a problem,” he said, adding that China may consider adapting the deal if the IMF provides a “good” reason to do so.

”I think what Mr. Strauss-Kahn said isn’t new,” Wu said “The discussion hasn’t changed.”

Congo holds a 32 percent stake in Sicomines, the state- owned mining venture that will own and mine the deposits, while China owns the rest. A geological study by the entity will determine the value of the assets the Chinese companies control. Those amounts will be known this year, Wu said, without being more precise.

Sinohydro and CREC have already invested hundreds of millions of dollars in Congo and have started upgrading infrastructure including three road-building projects and a Kinshasa hospital, Wu said. Chinese companies are also seeking alternative investment opportunities in Congo, Wu said.

Telecommunications-equipment supplier ZTE Corp. is developing a palm oil plantation, while Sinohydro is interested in building the Zongo 2 hydropower plant in the western Bas- Congo province, Wu said, without giving further details on the projects.

“Surely the story is going to turn on the Western donors,” Mthembu-Salter said. “When one party is building a hospital and the other is withholding debt relief to the poorest of the poor, that’s not going to look so good.”

Source: Bloomberg

Katanga Mining Reports Q1 Loss

Katanga Mining Ltd posted a first-quarter loss on Tuesday, as it continues to work on ramping-up production and lowering costs.

The copper and cobalt miner, which operates a major mine complex in the Democratic Republic of Congo, reported a net loss of $52 million, or 25 cents a share.

The company posted a year-ago loss of $17.4 million, or 10 cents a share, according to a prior statement.

Source: Reuters

First Quantum To Revive Zambian Copper Plant

Canada's First Quantum Minerals plans to restart copper production at its closed Bwana Mkubwa processing plant once it receives the go-ahead to open a new mine in central Zambia, the company said.

First Quantum said in an environmental assessment document submitted to the state-run Environmental Council of Zambia (ECZ) it intended to start mining at the Fishtie mine, but no timeline was given.

Under Zambian law, mining firms must first seek the approval of the ECZ before they can start producing copper.

"First Quantum Minerals intend to mine in the Mkushi district by open pit mining methods. The mined ore will be transported to Bwana Mkubwa processing plant in Ndola for processing," said the document seen by Reuters on Monday.

First Quantum, which also operates the Kansanshi copper mine and has a minority stake in Mopani Copper Mines (MCM), shut down the Bwana Mkubwa plant in October 2008 after authorities in the Democratic Republic of Congo (DRC) banned exports of copper ore to Zambia.

First Quantum was mining copper at Lonshi mine inside the DRC for processing at Bwana Mkubwa.

The document submitted to the ECZ said First Quantum intended to mine three million tonnes of copper ore at Fishtie copper deposit in Mkushi, about 275 km north east of Lusaka.

The mine's life was estimated at 27 months at an ore production rate of 100,780 tonnes per month, the document said.

Copper mining is the economic mainstay of the southern African country of 12 million people and mines are also a major employer.

Source: Reuters

Freeport Ships First Copper From Congolese Mine

Freeport-McMoRan Copper & Gold Inc began shipping the first copper cathode produced at its Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo on Wednesday.

"Today, we are looking at our first actual shipment of copper from that operation to the marketplace. The first truck shipment is leaving today. It takes an average of 20 to 30 days one way," Chief Executive Officer Richard Adkerson told analysts on a conference call.

"That involves trucking the copper cathode from the DRC to the South Africa marketplace. It's a test shipment. But we are producing copper there. We have an inventory of cathodes ready for shipment," he said.

The largest publicly traded copper producer's chief said Freeport has been shipping construction material on the same route for over a year, "It's not like we're just starting."

"But it's an important quarter for Tenke. The production team beat my own estimates about when we'd first be able to produce copper there," the CEO said.

Earlier on Wednesday, the Phoenix, Arizona-based mining company reported first-quarter profit slumped sharply and revenue dropped by more than half as the global economic downturn weakened metal demand and prices. [nN22411505]

It reported capital expenditures of $519 million for the first quarter, with nearly 50 percent related to Tenke Fungurume. The company expects capital expenditures of $1.3 billion for 2009, down from $2.7 billion in 2008.

Freeport will complete its spending at Tenke roughly by mid-2009, Adkerson said, but spending plans continue to be reviewed and may be revised based on market conditions.

He said the Phoenix, Arizona-based mining company was on schedule to ramp Tenke up to full capacity in the second half of 2009 to an annual production rate of 250 million lbs of copper and 18 million lbs of cobalt.

So far, Tenke's copper production circuit was essentially complete and Freeport was focused on completing the cobalt operation and an acid plant being built there.

Once fully ramped up, the operation's copper cost structure will be attractive at 50 cents a lb at current cobalt prices.

"Today cobalt's above $10 a lb. It's a small market and we'll be producing a lot of cobalt. But other producers in Zambia and the Congo are suspending production. If longer range prices are higher, those costs will come down substantially."

He said copper production costs could potentially fall to zero, if cobalt prices strengthen enough as a byproduct.

Discussions with the central African nation continue as part of the government's review of foreign mining contracts.

"We are continuing to work with the government on the contract review process. Progress has been made. We anticipate that this will be successfully concluded during the second quarter," said Adkerson.

Though the process took much longer than expected, he said Freeport's contract allows the company to ship product and operate its business and was enforceable under Congolese law.

"We are proceeding on the basis of that contract, which gives us the basis for what we're doing," he said.

The government's attention was diverted by violence in the Eastern provinces at the end of 2008, a change of parliament and economic challenges with the sharp drop in metals prices.

Freeport has continued to invest in social programs for the local community as well as the region's infrastructure by upgrading roads, railways and a hydropower facility.

Going forward, Adkerson said there were no constraints on expanding Tenke other than weak market demand.

Source: Reuters

RosSpetsSplav Expects Chrome Demand To Rise This Summer

Russia's largest chrome producer expects output of the metal, used in kitchen goods and the aerospace sector, to recover from the summer after a drop in demand led to an abrupt halt to production last year.

RosSpetsSplav is now running its Klyuchevsky Ferro-Alloy Plant at 40-50 percent of monthly its capacity of 600 tonnes and expects production this year to almost match 2008 levels, the company's president, Vyacheslav Grigoryev, told reporters.

"From March and April, we see real demand from end-users," Grigoryev said in comments approved for publication on Monday.

Privately owned RosSpetsSplav, or Russian Special Alloys, slashed output in response to the economic downturn, which cut demand and prices for chrome . The metal is also used in bathroom goods, dental and other medical applications.

Klyuchevsky Ferro-Alloy Plant, in the Sverdlovsk region in the Urals mountains, halted production for a week in November and for 10 days in December. Output last year fell to 6,460 tonnes from 9,004 tonnes in 2007.

Grigoryev said the Klyuchevsky plant produced 200 tonnes of chrome metal in March, up from 38 tonnes in the whole of the fourth quarter of 2008.

"This year we will produce a little less than last year," Grigoryev said. "But we see no ill in that, as we expect a slow but gradual rise in output from the summer."

Klyuchevsky produces more than 30 ferro-alloys used to toughen steel and is the only plant in Russia able to produce ferro-niobium, an alloy used to make high-quality pipes.

The company has a unit in the Democratic Republic of Congo, Congo Russia Industry, which participates in a project to mine niobium there. Until recently, this project was mothballed.

"As the political situation (in Congo) has returned to normal, we have started producing niobium concentrate," Grigoryev said.

"The first concentrate sales will start in the next few weeks. It is an investment project that will start to pay back," he said, adding that a deal was planned to sell concentrate to a British company, which he would not identify.

Grigoryev said the financial crisis had also benefited the Klyuchevsky plant, as the price of raw materials had fallen much more than the price of chrome metal.

The company buys chromite ore mainly from Turkey's Cihan Mining and Metal Co.

"Currently offered volumes are very significant, which allows us to agree terms with new suppliers," Grigoryev said.

"We have proposals to buy ore in Albania, South Africa and China. We are also buying raw materials from Kazakhstan and from the local Uralkhrom company," he said

Source: Forexpros.com

Ivanhoe Claims Congo Copper Discovery

Ivanhoe Nickel & Platinum, the African-focused metals explorer controlled by financier Robert Friedland, said on Wednesday it had made a copper discovery "of historic importance" in the Democratic Republic of Congo.

In a statement obtained by Reuters at the CRU/CESCO copper conference in Santiago, Friedland said drilling had uncovered "laterally continuous, sediment-hosted, high-grade stratiform copper mineralization in a newly discovered copper district that forms a previously unrecognized western extension of the famous Central African Copper Belt."

The Central African Copper Belt is host to several world-class
properties, including Freeport-McMoRan's Tenke-Fungurume deposit.

Friedland said the company is in confidential discussions with "a
carefully selected number of the world's leading, private and state-owned
international mining companies" to form a partnership to develop the
project.

Friedland is best known for discovering the massive Voisey's Bay nickel
deposit in eastern Canada. He also controls Ivanhoe Mines, which
is developing the massive Oyu Tolgoi copper/gold deposit in Mongolia in
partnership with Rio Tinto.

Source: Reuters

Tenke Fungurume Begins Copper Production

The Tenke Fungurume copper/cobalt project, in the Democratic Republic of Congo, has attracted more than its fair share of naysayers, many of whom questioned the almost $2-billion being poured into the project by its North American owners.

But it seems that Phoenix-based Freeport-McMoRan Copper & Gold and its minority partner Lundin Mining may have the last laugh, now that the operation has produced its first copper cathode and the initial plant is on schedule to reach its full production rate during the second half of this year, according to a report from Lundin.

Freeport operates the project and owns an effective 57,75% stake, while Toronto-based Lundin holds 24,75% and DRC State-owned miner Gecamines owns the balance.

The project's initial high-grade oxide ore facilities have been designed to produce about 115 000 t/y of copper cathode and 8 000 t/y of cobalt.

The ramp up of copper production will continue over the next several months in parallel to completion of the cobalt circuit and acid plant, Lundin said in a statement.

The achievement of first production also comes on the heels of a report by Bloomberg News that the DRC government has agreed not to push for any significant changes to the mining contract for Tenke Fungurume.

Like other operations in the country, the asset has been subject to a review of the contract between the government and the international investors in the mine.

Freeport and Lundin have maintained throughout the process that the contract was negotiated transparently and legitimately, and would hold up to legal scrutiny.

Source: Mining Weekly

CAMEC Restarts DRC Cobalt Exploration

Central African Mining and Exploration Co PLC has recommenced cobalt operations at Mukondo Mountain in the Katanga Province of the Democratic Republic of Congo due to the recent strengthening of demand in the market.

In order to preserve cash, CAMEC suspended operations at Mukondo Mountain in November 2008, as the global economic downturn resulted in the collapse of the cobalt price.

However, with a significant number of cobalt producers having suspended operations, inventories drawn down and demand beginning to show signs of recovery, the company feels it is appropriate to recommence operations, it said in a statement.

Source: Proactive Investors