Vancouver — The wheels of mine development turn slowly in the Democratic Republic of Congo (DRC), though
Kolwezi is in DRC’s famous copperbelt and consists of two dams containing 112.8 million tonnes of oxide tailings grading 1.49% copper and 0.32% cobalt.
International Financial Corp. (IFC), the financing arm of the World Bank, and Industrial Development Corp. of South Africa (IDC) have agreed to acquire equity interest in the project and become potential lenders. Adastra will gain US$12 million in cash once these agencies exercise their options.
Through a wholly owned subsidiary, Adastra now holds an 82.5% interest in Kingamyambo Musonoi Tailings, which owns the Kolwezi project. The government of the DRC holds a 5% stake, while state-owned Gcamines has a 12.5% interest.
Adastra’s interest in Kolwezi will be reduced to 65% in order to allow IFC and IDC to acquire 7.5% and 10% interests, respectively. The DRC government and Gcamines will retain their original holdings.
Based on a definitive feasibility study late last year, Kolwezi is initially expected to produce 5,500 tonnes of cobalt and 30,000 tonnes of copper per year. The operating life would be at least 50 years, and cash costs are expected to be among the lowest in the world.
Adastra notes that the project has sufficient resources to double production to 11,000 tonnes cobalt and 60,000 tonnes copper annually, and that the mine could potentially be expanded. But even at the initial production rate, the mine would generate much-needed jobs and benefits for the citizens of DRC.
Adastra (formerly America Mineral Fields) has other mineral projects in Africa, including the Kapushi zinc mine in the DRC.
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