CONGOLESE URANIUM: GDRC LOOKS TO CHINA FOR HELP

2/22/2008 14:46 08KINSHASA189 Embassy Kinshasa SECRET//NOFORN 07KINSHASA798 VZCZCXRO4862 OO RUEHDU RUEHMR RUEHRN DE RUEHKI #0189/01 0531446 ZNY SSSSS ZZH O 221446Z FEB 08 FM AMEMBASSY KINSHASA TO RUEHC/SECSTATE WASHDC IMMEDIATE 7579 INFO RUEHXR/RWANDA COLLECTIVE IMMEDIATE RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE IMMEDIATE RUEHSA/AMEMBASSY PRETORIA IMMEDIATE 4044 RUEHVI/AMEMBASSY VIENNA IMMEDIATE 0043 RHEFDIA/DIA WASHDC IMMEDIATE RUEAIIA/CIA WASHDC IMMEDIATE RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK IMMEDIATE RUEHUNV/USMISSION UNVIE VIENNA IMMEDIATE 0026 RHEBAAA/DEPT OF ENERGY WASHDC IMMEDIATE TAGS: EMIN ENRG ETRD KNNP PGOV PINR PINS SUBJECT: CONGOLESE URANIUM: GDRC LOOKS TO CHINA FOR HELP REF: 07 KINSHASA 798 S e c r e t section 01 of 02 kinshasa 000189 Sipdis Noforn sipdis Department for isn/ness dfenstermacher af/c E.o. 12958: decl: 02/22/2018 Tags: emin, enrg, etrd, knnp, pgov, pinr, pins Subject: congolese uranium: gdrc looks to china for help Ref: 07 kinshasa 798 Classified By: Acting DCM Craig Cloud for reasons 1.4 (b),(c),and (f) ¶1. (S/NF) Summary: Minister xxxxxxxxxxxx briefed the Ambassador on possible future Chinese involvement in uranium studies in the DRC at the request of President Kabila. End Summary. ¶2. (U) Minister xxxxxxxxxxxx requested a meeting with Ambassador Garvelink Thursday, 21 February after having met with him the previous week, along with Management Officer xxxxxxxxxxxx and xxxxxxxxxxxx to the United States, xxxxxxxxxxxx, to discuss recent complaints from Washington DC community groups concerning the advanced state of decay of the GDRC properties in Washington. We assumed that the subject of the follow-on meeting would be the same. It was not. ¶3. (SBU) xxxxxxxxxxxx emphasized that he was delivering a demarche at the request of President Kabila. He said the GDRC was very sensitive as to how the USG perceived the relationship between the GDRC and the Chinese Government, and he had requested the meeting in the interest of transparency. xxxxxxxxxxxx presented a rather lengthy description of the poor state of affairs in the Congo, recently emerged from a dictatorship that had stagnated development, closely followed by two civil wars, lack of infrastructure, education and capacity. ¶4. (SBU) He said the DRC,s sole means of escaping this situation was by trading on its only assets -- natural resources. He reeled off a litany of recent infrastructure agreements with China that aimed to construct 3600 km (2200 miles) of paved roads, 3200 km (2000 miles) of railway lines, two universities, 51 105-bed hospitals, and 32 150-bed hospitals, all in return for mineral rights to copper and cobalt that the Chinese are willing to pay more for than western nations. ¶5. (S/NF) xxxxxxxxxxxx said that the reason for our meeting was to let the USG know that the GDRC was very concerned about its uranium deposits. He noted two problems facing the GDRC in this regard: 1) the size of uranium deposits and their locations are unknown and present a grave national security problem; and 2) what to do with all of the uranium once the locations and quantities are known. To address the first problem, xxxxxxxxxxxx said the GDRC is negotiating an agreement to allow Chinese geological studies aimed at pinpointing the location and size of uranium deposits. He stressed that the negotiations are only tentative, and that they are strictly to study uranium distribution, not/not extraction. ¶6. (S/NF) To address the second problem, xxxxxxxxxxxx stated that once the quantity and location of the uranium reserves is determined the GDRC might approach the "nuclear club" to determine their interest in buying the uranium. (Note: The GDRC currently has a law on the books that absolutely prohibits the mining of uranium within its borders. According to open sources there are at least two companies already engaged in Uranium exploration in the DRC, Brinkley Mining Plc, and Elemental Minerals, Ltd. End Note.) ¶7. (S/NF) xxxxxxxxxxxx said the GDRC would welcome our advice on this uranium matter and requested that we treat the conversation as confidential. The Ambassador said he would report back to Washington and might have more questions and comments at a later date. ¶8. (S/NF) Comment: xxxxxxxxxxxx is a long-time political ally of both Joseph and Laurent Kabila, and has been closely involved in negotiations with the Chinese on infrastructure improvements. The timeframe for reaching an agreement for uranium exploration by the Chinese is unknown, but we believe that negotiations have already begun. With the recent sharp increases in uranium prices on the world market, partly due to renewed interest in new nuclear power generating stations, the GDRC may well be interested in not only knowing where its uranium deposits are, but in making the moves necessary now to cash in on the potential demand for uranium (reftel). End Kinshasa 00000189 002 of 002 Comment. Garvelink