MINING SECTOR UPDATE - DIAMONDS, URANIUM, COPPER

UNCLAS KINSHASA 001688 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EMIN ECON ETRD KGIT IAEA CG SUBJECT: MINING SECTOR UPDATE - DIAMONDS, URANIUM, COPPER REF: KINSHASA 1624 ¶1. (U) Summary. The diamond sector has experienced more mining accidents and a decrease in official export revenues and production figures. The DRC's Atomic Energy Commission has entered into an agreement with a foreign company to develop uranium projects, while yet another copper mining company is preparing to launch a public offering to raise capital to develop joint-venture projects. End summary. DIAMOND SECTOR -------------- ¶2. (U) Another cave-in occurred at a diamond mine in Western Kasai October 22, according to Congolese media. Three persons died, and two are missing. This is the fifth reported cave-in at this mine in two weeks (reftel). ¶3. (U) Official diamond production and export by value through August 2006 are lower than those for the same 2005 period, according to the statistics the CEEC (the DRC's diamond and gold evaluating authority) released October 19. Through August, the DRC officially exported about 16.4 million carats, an increase of about 20,000 carats over exports through August 2005. However, the 2006 value to date has declined by nearly 20 percent over last year. Total official production has decreased by over 2 million carats from 2005, due primarily to the drop in MIBA's (DRC's diamond mining parastatal) production. ¶4. (U) The GDRC is participating in discussions in Angola the week of October 30 regarding the newly-formed Diamond Producers of Africa, a group formed to create a joint strategy for advancing sector development. The New Partnership for Africa's Development (NEPAD) and a Belgian consulting firm are supporting this project. POSSIBLE URANIUM PROJECTS -------------- ¶5. (U) Uranium exploration and development company Brinkley Mining, a London AIM-listed company, has entered into an agreement with CGEA (the DRC's atomic regulatory commission) to develop as yet unspecified uranium projects in the DRC. Brinkley Mining will hold an 80 percent share in the joint venture's mining projects through its subsidiary, Brinkley Africa. COPPER -------------- ¶6. (U) Toronto Stock Exchange-listed Katanga Mining Limited is planning to launch an equity offering, in part to raise funds for its Kamoto copper/cobalt mine joint venture with Gecamines (DRC's copper/cobalt mining parastatal). Katanga Mining is the holding company for Kamoto Copper Company, and is part of the George Forrest International group of enterprises. MEECE