Kabila’s government slow to advance mining in DRC

When Laurent Kabila wrested control of the former Zaire from ailing dictator Mobutu Sese Seko more than a year ago, he promised to revive the nation’s ailing mining industry, wage a war on corruption, and usher in a new era of prosperity.

Now the president of the Democratic Republic of the Congo (DRC), Kabila is facing outbreaks of civil unrest in various parts of the African nation, as well as criticism from human rights activists. The mining industry has yet to get off the ground, and weakening metal prices have done little to refill the country’s near-empty coffers. And a dispute with neighboring Rwanda is causing concern.

Kabila’s government also is viewed with some trepidation by foreign investors, though most are loath to criticize his administration publicly, or its lack of progress in the battle against corruption. However, in recent weeks, Kabila has taken steps to help accelerate several key mineral projects.

Attempts by America Mineral Fields (amz-t) to secure rights to the Kolwezi copper-cobalt tailings project are back on track after being stalled by a dispute with the government and another potential bidder, Anglo American of South Africa.

Having kissed and made up, America Mineral Fields and equal partner Anglo American are engaged in final negotiations with the DRC to conclude the terms of a formal agreement for Kolwezi. To speed up the process, Kabila and his cabinet have appointed a special committee to work out an agreement within 30 days.

Meanwhile, Tenke Mining

(TNK-T) is nearing completion of a feasibility study for the Tenke Fungurume deposits in Katanga province. The concessions are estimated to contain more than 500 million tonnes of resources grading 3.5% copper and 0.27% cobalt, plus significant exploration potential.

Tenke Mining is attempting to secure an agreement with a senior company to help finance development of the large copper-cobalt project.