Confusion over DRC mining contracts

Anvil Mining  responded yesterday to news reports that the Commission appointed to review mining contracts in the Democratic Republic of the Congo (DRC) and which reports to the Minister of Mines in the DRC, has recommended that 61 of those contracts be renegotiated or terminated. Anvil says “the recommendations appear to relate to almost all of the companies which hold mining rights in the country without regard to the timing or basis upon which they were negotiated. News reports have stated that the Commission will recommend the termination of Anvil’s contractual rights to the Dikulushi copper-silver mine as well as the rights to 23 other contracts held by other companies. In addition, news reports have stated that Anvil’s joint venture in respect of the Mutoshi property (which includes the Kulu Mine) and lease agreement with respect to the Kinsevere-Nambulwa property (which includes the Kinsevere Mine) have been recommended for renegotiation along with another 35 contracts held by other companies.”

Anvil confirmed that it has received no written communication from the Minister of Mines or the Commission (or any other government body in the DRC) in respect of renegotiation or termination of any agreement to which Anvil or any of its subsidiaries is a party. Anvil says it “understands that the Commission is to report to the Minister of Mines and that the Commission is mandated to issue recommendations only and does not appear to have the power itself to renegotiate or terminate any contract. Accordingly, Anvil can offer no comment on whether any of its contractual arrangements in the DRC will actually be terminated or renegotiated. Nor can it comment on the terms of any such renegotiation or termination.”

Anvil has majority interests in and operates the Dikulushi copper-silver mine, the Kinsevere copper mine and the Kulu copper tailings operation in the Katanga Province of the DRC.