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Metorex to bid for Kipushi Posted: Sun, 01 Oct 2006 [miningmx.com] -- METOREX, the diversified South African firm, may throw its hat into the ring for Kipushi, a large zinc deposit in the Democratic Republic of Congo (DRC). Kumba Resources and Canada’s First Quantum Minerals, however, have both said they will take legal action to protect their rights at Kipushi. This was after Gecamines, the DRC’s state-owned mineral company, asked for tenders for partners at Kipushi. Kumba and First Quantum claim having the rights to develop the mine. Metorex CEO Charles Needham declined to say outright whether Metorex would tender for Kipushi, possibly owing to confidentiality agreements with Gecamines. But he was unambiguous about Metorex's interest in Kipushi. Asked whether Metorex was interested in Kipushi, he said: “One hundred percent. We ran a zinc mine for 15 years so there’s nothing new to us in zinc mining. That is a magnificent deposit.” Metorex owned the Maranda zinc and copper mine in South Africa, which was closed a few years ago. It currently owns the Ruashi copper and cobalt project in the DRC. Companies interested in partnering Gecamines at Kipushi, which was mined for 68 years until a lack of finance shut it down in 1993, will submit their bids at the end of October. Kipushi is estimated to have a measured and indicated resource of 16.9 million tons with an average grade of 16.7% zinc and 2.2% copper. Asked whether Metorex was concerned about possible lengthy litigation from Kumba and First Quantum, Needham said: “Would Gecamines with their level of intelligence and legal skill and advice put it out to international tender if they weren’t sure about their facts?” Gecamines MD Paul Fortin said in mid-September Kumba and First Quantum have no legal rights to Kipushi, according to a Reuters report at the time. "With regard to Kipushi, Gecamines is advised that First Quantum and Kumba have no rights at all over Kipushi, which was confirmed by the legal advice GCM (Gecamines) obtained before launching the tender," Fortin told Reuters. "Kumba and First Quantum have the possibility of submitting a proposal like any other mining company," he said. Douglas Taylor, director of strategy and business development at Kumba, told Miningmx earlier in September his company had met with DRC mines minister Ingele Ifoto about the way Gecamines has handled the issue.Free news alerts: click here to subscribe
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