Friday, February 09, 2007

Tenke Mining Update Gecamines Transparency Issue

"Gecamines Mining Contract Reviews Being Done `Calmly' (Update1)
By Antony Sguazzin
Feb. 7 (Bloomberg) -- Gecamines, the state-owned copper mining company, said its review of contracts with foreign companies won't affect their operations in the Democratic Republic of Congo.
While the review may be of concern to investors, it is being carried out in a ``spirit of improvement,'' Paul Fortin, the company's managing director, said today at the Mining Indaba conference in Cape Town.

``It will be a review that is done objectively and calmly with discussions,'' Fortin said. ``It should be viewed as something that will not disturb your operations.''
Congo held its first democratic elections in four decades last year and is now trying to revive its economy after civil wars killed four million people and destroyed already limited infrastructure. The country has some of the world's biggest copper and cobalt reserves.
On Oct. 31, Fortin said in an interview that the equity stakes Gecamines holds in project will be looked and claims where little has been done to explore for metals or develop mines may be reclaimed.
Gecamines' accords with Phelps Dodge Corp., Global Enterprises Co. and Kinross Forrest will be reviewed after the World Bank questioned the transparency of the contracts, the Financial Times reported on Jan. 3.
To contact the reporter on this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net . "
I can not find any source with credible information from Liege Belgium where Congo Mining Workshop took place apart this post from StockHouse BB:
"Fortin on Tenke production
Congo Mining Workshop (01/12/2007) Liège-Belgium
Tenke-Fungurume production forecast:Copper in ktCu 2009=40 2010=40 2011=40 2012=65 2013=141 2014=141 2015=60 Cobalt. in ktCo 2009=02 2010=02 2011=02 2012=05 2013=009 2014=011 2015=08
Total for his presentation with Gecamines-partners
: DCP KCC KMT TFM SMK RMbut not CAMEC, AFRICO or Chinese like Covec, Hanrui or Wambao
Copper in ktCu 06=72 07=132 08=196 09=329 10=432 11=515 12=540 13=616 14=616 15=616 Cobalt in ktCo 06=13 07=17.6 08=21.7 09=28.1 10=34.5 11=43 12=46 13=56 14=57 15=52
DCP = NIKANOR = DRC Copper Project ( Tilwezembe - Kananga - KOV)KCC = KATANGA MINING = Kamoto Copper CompanyKMT = FIRST QUANTUM = Kingamiambo Musonoï Tailings SarlTFM = TENKE/PHELPS-DODGE = Tenke Fungurume MiningRM = METOREX = Ruashi Mining (Ruashi - Etoile)"
If it will be confirmed it means that Paul Fortin Managing Director of Gecamines Partner of Phelps Dodge and Tenke mining in Tenke Fungurume project is ALREADY counting production from this project in 2009 (in line with Tenke mining estimates) and question of Transparency in case of Tenke Fungurume Gecamines deal will be resolved and conditions reconfirmed in the nearest future. It will clear hopefully last political hurdle on the way of stock appreciation to its intrinsic value.

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