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Exxaro may abandon Kipushi Posted: Fri, 25 May 2007 [miningmx.com] -- EXXARO Resources may abandon its bid to become involved in the Congo's Kipushi zinc project as well as claiming damages if the company failed to make progress by the year-end, the company said. "If during the course of this year there's no progress, we will step aside," said Con Fauconnier, outgoing CEO of Exxaro Resources. Fauconnier, who is to be succeeded by Sipho Nkosi, said the company would not do business at any cost. Doug Taylor, who is responsible for Exxaro Resources's African exploration, recently returned from the Congo and is due to brief senior management on potential progress. "We've yet to hear if there's an update," Fauconnier said. On April 13, Exxaro Resources' lawyers said they were considering sueing Gecamines for $4m, the Congo government's base metals company, after losing the right to develop Kipushi zinc project. It said it could be joined in legal action by joint venture partner in Kipushi, First Quantum Minerals. However, Fauconnier told Miningmx in an interview that although the company had a solid case, it was more difficult enforcing its rights. "The legal prouncements from the courts have been in our favour. But can you enforce performance or claim damages?" Gecamines pulled the project away from the two companies last year claiming both companies had no contract to develop the mine. Gecamines then offered the project on international tender to other investors. The tender was awarded to United Resources in February. Charles Needham, whose company Metorex was one of the unsuccessful bidders for Kipushi, said the company remained interested in bringing technical expertise to the project. "I think we'd like the dust to settle and see if we can contribute in a technical or managerial sense," he said. Metorex had not yet been in contract with United Resources. Click Here to subscribe to our daily newsletter
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