American Mineral Fields gets decree

Congolese president Joseph Kabila has signed off on a decree approving the deal under which America Mineral Fields (AMZ-T) can acquire the Kolwezi copper-cobalt tailings project in Katanga province, Democratic Republic of Congo.

The deal, approved by the country’s cabinet, the Council of Ministers, last week, gives America Mineral Fields an 82.5% interest in an operating company, Kingamyambo Musonoi Tailings. The state-owned mining enterprise Gcamines will own 12.5% and the government will own a further 5% directly.

American Mineral Fields has still to sign a contract with Gcamines and pay the state company an initial US$5 million. Once the contract is signed, American Mineral Fields must complete a bankable feasibility study and arrange financing for the project. A second payment of US$10 million is due once the project finance closes.

The tailings resource at the project amounts to 113 million tonnes at grades of 1.49% copper and 0.32% cobalt.