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