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Weeding out corruption Posted: Fri, 16 Nov 2007 [miningmx.com] -- ONE OF THE FACTORS seen curtailing investment in the DRC and keeping the majors from making large forays into the country is the DRC government’s review of 60 mining licences that began in June this year. The DRC is weeding out deals it thinks were incorrectly issued or handled in a corrupt or fraudulent way, a process not without its critics. Global Witness, an NGO group monitoring the link between natural resources, corruption and conflict, says while the review is welcome to weed out the “opaque deals” that marked decades of mineral exploitation in the DRC there’s a concern about the speed at which the review’s being conducted. “This initiative could have marked a turning point by restoring transparency, fairness and trust in the mining sector,” says Global Witness director Patrick Alley. “It could also provide an effective tool with which to rebuild confidence among civil society, economic operators, investors and donors. Instead, the government is rushing the whole process through so fast that you have to question the thoroughness and objectivity of the exercise.” Central African Mining & Exploration Company had its mineral rights revoked in August 2007, effectively scuppering its all-share bid for Katanga to create the world’s largest cobalt producer. The government said the licences it held weren’t acquired correctly. Mining bosses tread very cautiously when handling questions about the review process for fear of possibly offending the powers controlling their destinies and investments in the DRC. Says Ditto: “Our expectation is that the review process will show our joint venture with Gecamines is consistent with the mining code and with the law and that it will pass muster on that basis. “I think once the review is completed we’ll see more interest by the bigger companies in taking a position in the DRC,” says Ditto, adding it wouldn’t be unreasonable to expect the review process to be wrapped up by year-end. Another company grappling with the politics of owning projects in the DRC is Brinkley Mining, which says it’s secured an enormous land package of uranium prospects. There’s also been a steady stream of bad news out of the DRC that casts doubt on the validity of Brinkley’s joint venture agreement with the General Commission for Atomic Energy (CGEA), which is solely responsible for the DRC’s uranium sector. “What’s very clear is that we’re playing big-boy politics – and in a place like the DRC playing big-boy politics can get very ugly,” says Brinkley chairman Gerard Holden, who believes there’s a smear campaign against the company to force it to leave the country. The latest salvo against Brinkley at the time of writing was news regarding the DRC government telling the International Atomic Energy Authority that the joint venture between the AIM-listed company and CGEA won’t progress. Anvil Mining was alleged to have helped government troops suppress as uprising at the village of Kilwa, not far from its Dikulushi mine, in October 2004. The mine was requested (verbally and in writing) to supply vehicles to the troops at the time. Anvil evacuated its staff from the mine when the incident happened, says Robert LaValliere, vice-president of Anvil’s investor relations. Click Here to subscribe to our daily
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