American Mineral Fields gets Kolwezi decree

Congolese President Joseph Kabila has approved a deal under which American Mineral Fields (AMZ-T) can acquire the Kolwezi copper-cobalt tailings project in Katanga province, Democratic Republic of Congo.

The agreement, approved by the country’s council of ministers (cabinet), gives American Mineral Fields an 82.5% interest in an operating company, Kingamyambo Musonoi Tailings. The state-owned mining enterprise Gecamines will own 12.5% and the government will own a further 5% directly.

American Mineral Fields has signed a contract with Gecamines and paid the state company an initial US$5 million. American Mineral Fields must now complete a bankable feasibility study and arrange fi]nancing for the project. A second payment of US$10 million is due once the project financing closes.

The tailings resource at the project amounts to 113 million tonnes at grades of 1.49% copper and 0.32% cobalt.