MINISTER OF SCIENTIFIC RESEARCH WANTS TO

S E C R E T SECTION 01 OF 02 KINSHASA 000798

SIPDIS

SIPDIS

E.O. 12958: DECL: 07/09/2017
TAGS: ENRG ETRD KNNP PGOV PINR PINS IAEA EMIN
SUBJECT: MINISTER OF SCIENTIFIC RESEARCH WANTS TO
RECOMMENCE LEGITIMATE URANIUM MINING IN THE DRC

REF: A. KINSHASA 00796

B. KINSHASA 00797

Classified By: DPOPOVICH, ECONOFF, Reason 1.4(b)(c)(f)


1. (S) As previously noted, extensive deposits of uranium
exist in the Democratic Republic of Congo (DRC),and the
price of uranium (U308) has risen on the international market
from $15 a pound in 2004, to $135 a pound in 2007. The DRC
is thus sitting on an significant reserve of unexploited
wealth.


2. (S) Per REF B, Econoff has received several reports in the
past two months from approximately six different sources that
DRC mining companies are illegally mining, exporting and
selling uranium in the course of their normal, legitimate
copper and cobalt mining operations. The mining companies
are reportedly selling highly uranified ore, which they
report as copper, to international buyers. The buyers then
separate the uranium, copper and cobalt from the ore abroad.
In 2006, for example, there are unverified reports that an
unidentified Finish company told the International Atomic
Energy Commission (IAEA) that they imported one ton of
uranium from the DRC. The DRC, however, claims they did not
export any uranium in 2006.


3. (S) Given these circumstances, the DRC,s new Minister of
Scientific Research, Sylvanus Mushi Bonane, says he wants
reputable international mining companies to enter into deals
with the DRC to begin mining uranium in the Congo. The
belief is that if the DRC and reputable mining companies
begin mining uranium, then unexploited uranium profits will
be realized, and illegal uranium trafficking will be
curtailed as legitimacy and transparency are brought to the
process.


4. (S) On 31 May 2007, Minister Mushi asked to see the U.S.
Ambassador. During the meeting, Mushi said that the Ministry
of Scientific Research wanted to renew uranium mining in
Katanga, but Mushi did not want to enter into questionable
agreements with unethical companies. He said he wanted to
have uranium mined by reputable international companies in a
transparent manner in accordance with IAEA regulations.
Minister Mushi asked if the Ambassador knew of any American
companies who would be interested in mining uranium in the
DRC, and if the Ambassador could let American companies know
that the DRC was interested in resuming production. Francois
Lubala Toto also attended the meeting. He is the Director of
the Kinshasa Nuclear Research Center (CRENK) and the Congo's
Atomic Energy Commission (CGEA).


5. (S) The Ambassador welcomed Minister Mushi,s comments,
and said he would try and investigate American interest
further. The Ambassador also made a point to add that any
mining agreements the DRC made with North Korean or Iranian
enterprises, or with individuals with questionable
reputations such as Billy Rautenbach, would be ill-advised
and judged harshly. (Note: South Africa has an arrest
warrant issued for Rautenbach for fraud. He owns 8% of
CAMEC, who produces approximately 40,000 tons of copper and
6,000 tons of cobalt a year from their Luita Copper facility
in the DRC,s Katanga Province. End Note.)


6. (S) Minister Mushi repeatedly noted that he did not want
to enter into ethically questionable deals. He said, for
example, that a representative of Britain's Brinkley Mining
PLC company had recently sat on the same couch in his office
a few weeks before and offered him a house in Cape Town in
return for favorable consideration. Minister Mushi said that
he threw the Brinkley representative out of his office.


7. (S) Despite what Minister Mushi told the Ambassador on 31
May, however, on 9 July, according to media reports, the DRC
signed a contract with Brinkley Mining to begin mining
uranium in the DRC. Brinkley promised an initial investment
of $3 million dollars, and hoped to begin mining uranium in
two years. Under the deal, CRENK/CGEA Director Lubala told
the media that Brinkley would have a 75 percent stake in the
venture, and the CGEA would have a 25 percent stake.


8. (S) As noted in REF B, Brinkley had signed a memorandum of
understanding with Lubala's predecessor, Fortunat Lumu
Badimabayi-Matu, in November 2006. Under this deal, Brinkley

KINSHASA 00000798 002 OF 002


received a 80 percent stake in the venture, and the DRC
received a 20 percent stake. In addition, Brinkley and Lumu
agreed to form a private cooperation to certify Brinkley
uranium exports. Lumu was going to be the president of this
company, and personally profit from it.


9. (S) Minister Mushi, who assumed his position as Minister
after Lumu had struck this deal, fired Lumu in March, shortly
after this deal was reached, tarnishing Lumu's name and
muddying the situation by suggesting Lumu was fired because
he sold uranium stored at CRENK's nuclear reactor. These
allegations later proved to be false, after the media
coverage of the drama died out. Some GDRC officials claimed
that Lumu was fired so that Minister Mushi and Lubala could
negotiate a better deal for themselves with a foreign uranium
mining company. Mushi named Lubala to Lumu's old positions
after he fired Lumu, and Lumu claims Lubala is Mushi's
cousin.
MEECE