The Kipushi polymetallic deposit in Zaire will be reworked following an agreement between American Mineral Fields (VSE) and mining powerhouse Anglo American.
The latter will contribute up to $100 million to earn a half interest in a holding company incorporated to rehabilitate the Kipushi mine and construct a new zinc-copper processing plant on the site.
The partners will also launch an exploration program covering a 500,000-sq.-km area in the Shaba province of Zaire and participate in a tender for the design, development and operation of Gecamines’ Kolwezi tailings project. Gecamines is a state-controlled company and, as such, dominates Zaire’s mining industry.
American Mineral, which raised $30 million through a private placement, says the Kipushi mine is one of the world’s most important zinc deposits. It once produced 120,000 tons of zinc concentrate per year and still contains an estimated contained metal value of more than US$6 billion.
Anglo will contribute 20% to the capital cost of both the Kipushi and Kolwezi projects, up to a maximum of US$100 million. Thereafter, these projects, like the Shaba project, will be financed on a 50-50 basis.
The agreement is subject to confirmation by the boards of Anglo American and American Mineral, government ratification of the agreement between American Mineral and Gecamines, and regulatory approval.
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