Identifier
Created
Classification
Origin
07KINSHASA56
2007-01-19 11:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kinshasa
how-toVZCZCXRO2599 RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN DE RUEHKI #0056/01 0191125 ZNR UUUUU ZZH R 191125Z JAN 07 FM AMEMBASSY KINSHASA TO RUEHC/SECSTATE WASHDC 5434 INFO RUCNSAD/SOUTHERN AFRICAN DEVELOP COLLECTIVE RUEHXR/RWANDA COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC RUEAIIA/CIA WASHDC RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK RHMFISS/HQ USEUCOM VAIHINGEN GE
UNCLAS SECTION 01 OF 02 KINSHASA 000056
SIPDIS
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: EMIN ECON ETRD PGOV ZI CG
SUBJECT: MINING EXTRACTS, #1
REF: A. KINSHASA 49
B. 05 KINSHASA 1500
UNCLAS SECTION 01 OF 02 KINSHASA 000056
SIPDIS
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: EMIN ECON ETRD PGOV ZI CG
SUBJECT: MINING EXTRACTS, #1
REF: A. KINSHASA 49
B. 05 KINSHASA 1500
1. (U) Summary. Several artisanal diamond miners died in
mining-related accidents, and diamonds illegally exported from
Zimbabwe are reportedly appearing for sale in the DRC. Delays in
obtaining and importing adequate equipment is causing construction
delays for major copper/cobalt mining projects. The GDRC is planning
to launch new petroleum concession tender offers, although many
concession agreements await presidential approval. End summary.
Copper/Cobalt Industry
--------------
2. (SBU) At least two of the largest copper/cobalt projects may not
meet their initial targets of production start-up in 2008. Nikanor,
a London Alternative Investment Market-listed company, now projects
a 2010 operational launch date for KOV, potentially the most
lucrative of its three copper/cobalt mines. A Phelps Dodge (PD)
official told EconOff PD is experiencing delays too, in part because
PD, like other copper/cobalt mining companies, cannot obtain and
import necessary equipment and supplies as quickly as needed. Not
only is there a shortage of needed goods, but also the GDRC is slow
to decide which of the imported items will receive tax exoneration
requests.
Diamond Industry
--------------
3. (U) Utilizing a periodic, random scan of personnel, MIBA (the
DRC's diamond mining parastatal) allegedly detected 136 white
diamonds of an undetermined value in the digestive tract of one of
its guards. The diamonds were recovered at a local hospital, and
legal proceedings have been initiated against the guard. MIBA is
certain the guard could not have acted alone, and is conducting an
investigation.
4. (U) Newly-discovered, unpolished Zimbabwean diamonds are being
illegally exported into the DRC for sale. One private sector contact
told EconOff the diamonds are extremely unique, with a dark brown
coating, and could only have come from Zimbabwe.
Petroleum Industry
--------------
5. (U) The GDRC may divide the Ministry of Energy and Hydrocarbons
into a Ministry of Hydrocarbons and a Ministry of Energy (covering
water, electricity and other sources),according to officials within
the Energy Ministry and in the private sector.
6. (U) A Ministry of Energy official told EconOff the GDRC hopes to
launch tender offers in February for several petroleum exploration
blocks in the DRC's Central Basin, a region of potential oil
reserves including Bandundu and Equateur provinces. The official
said a Brazilian laboratory is examining petroleum samples from the
Central Basin and will propose to the Energy Ministry the number and
layout of the concession blocks.
7. (U) Several pending petroleum concession agreements continue to
await presidential approval, including deals for exploration on and
around Lake Albert and for onshore exploration in Bas Congo
province.
Mining Accidents
--------------
8. (U) Yet another cave-in has killed at least 15 artisanal diamond
diggers and left 30 or more missing, in the Tshikapa, Western Kasai
alluvial diamond mining area. The ravine where the hundreds of
diggers were working, itself created by water erosion, collapsed
December 5, likely caused in part by heavy rains.
9. (U) CHEMAF, an Indian-owned mining company, is sponsoring the
relocation of several hundred artisanal miners from one of its open
pits near Lubumbashi, Katanga province, following a violent December
28 conflict between the miners and local police (reftel A). About
200 diggers are being moved to an alternate mine site, and CHEMAF is
giving each miner some food and about USD 40. According to
Congolese media, CHEMAF has selected five sites for this planned
relocation of about 1,500 artisanal miners.
Mining Company-GDRC Disputes
--------------
10. (SBU) South African mining company Metorex says there is no
merit to the GDRC's claim that Metorex was polluting the Ruashi
KINSHASA 00000056 002 OF 002
River in Katanga province (reftel B). A Metorex official told
EconOff that GDRC officials visited several mining companies in late
2006 in connection with such claims and that the visits were
perceived to be little more than "tax collection efforts."
MEECE
SIPDIS
SIPDIS
SENSITIVE
E.O. 12958: N/A
TAGS: EMIN ECON ETRD PGOV ZI CG
SUBJECT: MINING EXTRACTS, #1
REF: A. KINSHASA 49
B. 05 KINSHASA 1500
1. (U) Summary. Several artisanal diamond miners died in
mining-related accidents, and diamonds illegally exported from
Zimbabwe are reportedly appearing for sale in the DRC. Delays in
obtaining and importing adequate equipment is causing construction
delays for major copper/cobalt mining projects. The GDRC is planning
to launch new petroleum concession tender offers, although many
concession agreements await presidential approval. End summary.
Copper/Cobalt Industry
--------------
2. (SBU) At least two of the largest copper/cobalt projects may not
meet their initial targets of production start-up in 2008. Nikanor,
a London Alternative Investment Market-listed company, now projects
a 2010 operational launch date for KOV, potentially the most
lucrative of its three copper/cobalt mines. A Phelps Dodge (PD)
official told EconOff PD is experiencing delays too, in part because
PD, like other copper/cobalt mining companies, cannot obtain and
import necessary equipment and supplies as quickly as needed. Not
only is there a shortage of needed goods, but also the GDRC is slow
to decide which of the imported items will receive tax exoneration
requests.
Diamond Industry
--------------
3. (U) Utilizing a periodic, random scan of personnel, MIBA (the
DRC's diamond mining parastatal) allegedly detected 136 white
diamonds of an undetermined value in the digestive tract of one of
its guards. The diamonds were recovered at a local hospital, and
legal proceedings have been initiated against the guard. MIBA is
certain the guard could not have acted alone, and is conducting an
investigation.
4. (U) Newly-discovered, unpolished Zimbabwean diamonds are being
illegally exported into the DRC for sale. One private sector contact
told EconOff the diamonds are extremely unique, with a dark brown
coating, and could only have come from Zimbabwe.
Petroleum Industry
--------------
5. (U) The GDRC may divide the Ministry of Energy and Hydrocarbons
into a Ministry of Hydrocarbons and a Ministry of Energy (covering
water, electricity and other sources),according to officials within
the Energy Ministry and in the private sector.
6. (U) A Ministry of Energy official told EconOff the GDRC hopes to
launch tender offers in February for several petroleum exploration
blocks in the DRC's Central Basin, a region of potential oil
reserves including Bandundu and Equateur provinces. The official
said a Brazilian laboratory is examining petroleum samples from the
Central Basin and will propose to the Energy Ministry the number and
layout of the concession blocks.
7. (U) Several pending petroleum concession agreements continue to
await presidential approval, including deals for exploration on and
around Lake Albert and for onshore exploration in Bas Congo
province.
Mining Accidents
--------------
8. (U) Yet another cave-in has killed at least 15 artisanal diamond
diggers and left 30 or more missing, in the Tshikapa, Western Kasai
alluvial diamond mining area. The ravine where the hundreds of
diggers were working, itself created by water erosion, collapsed
December 5, likely caused in part by heavy rains.
9. (U) CHEMAF, an Indian-owned mining company, is sponsoring the
relocation of several hundred artisanal miners from one of its open
pits near Lubumbashi, Katanga province, following a violent December
28 conflict between the miners and local police (reftel A). About
200 diggers are being moved to an alternate mine site, and CHEMAF is
giving each miner some food and about USD 40. According to
Congolese media, CHEMAF has selected five sites for this planned
relocation of about 1,500 artisanal miners.
Mining Company-GDRC Disputes
--------------
10. (SBU) South African mining company Metorex says there is no
merit to the GDRC's claim that Metorex was polluting the Ruashi
KINSHASA 00000056 002 OF 002
River in Katanga province (reftel B). A Metorex official told
EconOff that GDRC officials visited several mining companies in late
2006 in connection with such claims and that the visits were
perceived to be little more than "tax collection efforts."
MEECE