DRC MINING EXTRACTS, #5

UNCLAS KINSHASA 000654 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EMIN EPET ENRG ECON CG SUBJECT: DRC MINING EXTRACTS, #5 REF: KINSHASA 413 ¶1. Summary. The GDRC has officially begun its mining contract review process. A South African mining company has removed all artisanal miners from its Katanga copper concession. The GDRC and the Government of Rwanda continue discussions about methane gas exploration in Lake Kivu. End summary. GENERAL MINING ISSUES -------------- ¶2. (U) The GDRC formally launched the work of its mining contract review commission at a brief ceremony on June 11, at which Minister of Mines Martin Kabwelulu spoke. The Carter Center will receive USD 50,000 from George Soros' Open Society Institute to provide technical assistance for the process, although it has not yet agreed with the GDRC on the details of this support. COPPER/COBALT -------------- ¶3. (SBU) An executive at South African copper mining company Metorex told EconOff June 11 the company has been able to remove peacefully the 2500 artisanal miners on its Katanga province concession in the last two months by paying them USD 200 each. Thus far none have tried to return to the concession, which is located just outside Lubumbashi. GOLD -------------- ¶4. (SBU) New York Stock Exchange-listed gold mining company Newmont is exploring the possibility of investing in the DRC. METHANE GAS -------------- ¶5. (U) The GDRC and Government of Rwanda have formed a commission to discuss methane gas exploitation on Lake Kivu, pursuant to a March 28 Memorandum of Understanding reported in reftel. The GDRC has not granted any concessions for the project, although a Ministry of Hydrocarbons official told EconOff several companies have expressed interest. PETROLEUM -------------- ¶6. (SBU) A Ministry of Hydrocarbons official told EconOff the GDRC still intends in the coming months to launch a call for tender offers for petroleum exploration blocks in the Central Basin, a region of potential oil reserves in Bandundu and Equateur provinces. The Ministry is consulting with a Brazilian firm to divide the blocks. A Ministry official said preliminary testing at two sites in Bandundu was promising. TIN --- ¶7. (U) The GDRC briefly halted flights carrying tin ore for export from the mining area of Walikale in North Kivu. According to media reports, civil aviation authorities suspended flights for several days claiming security concerns; in May a plane overloaded with minerals crashed en route from Walikale to Goma. MEECE MEECE