Kalukundi mine

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Kalukundi Mine
Mine de Kalukundi
Location
Democratic Republic of the Congo adm location map.svg
Schlaegel und Eisen nach DIN 21800.svg
Kalukundi Mine
Mine de Kalukundi
Location in the Congo
Province Lualaba Province
Country DR Congo
Coordinates 10°37′23″S25°53′59″E / 10.623155°S 25.899839°E / -10.623155; 25.899839
Production
Products Copper
Owner
Company Eurasian Resources Group (75%)
Gécamines (25%)
Website www.erg.kz

Kalukundi Mine (French: Mine de Kalukundi) is a copper and cobalt mine being developed in Katanga Province, Democratic Republic of the Congo (DRC) by Africo Resources, a Canadian company. In September 2008 the company estimated the value of the resource as $1.47 billion. [1]

Contents

Ownership

The property is owned by Swanmines, which is jointly owned by Africo Resources (75%) and the state-owned Gécamines (25%).

Ownership dispute and Camrose buyout

In 2007 there was an ownership dispute when a DRC company named Akam Mining claimed it had bought control of Swanmines, and this claim was upheld in a superior court in Lubumbashi. In September 2007 from DRC justice minister Georges Minsay Booka directed Gécamines to take note that Akam Mining had no stake in the property. [2] In 2008, Dan Gertler offered to buy a majority stake in Africo. At the same time, Gertler allegedly paid $900,000 in bribes to Congolese court officials to delay ruling on the case until Africo shareholders could vote on Gertler's buyout offer. [3] Africo shareholders voted to accept the buyout offer, giving Gertler's Camrose Resources a 63% controlling stake in Africo. [4]

Following a government review of all Katanga mining contracts, in February 2009 Africo Resources made an agreement with the DRC government and Gécamines for amended terms for the project. [5]

Subsequent Och-Ziff lawsuits

According to prosecutors in the United States, Israeli mining magnate Dan Gertler paid millions of dollars in bribes through Och-Ziff Capital Management in order to influence legal proceedings in the DRC over the Kalukundi mine. [6] In 2016, Och-Ziff agreed to pay a $412 million settlement as restitution for passing along bribes from Gertler. [7] This case precipitated a similar bribery complaint, made public in 2019, from Africo investors against Och-Ziff. [8] The restitution payment was eventually sent out in 2020. [9]

ENRC buyout

In 2010, Eurasian Natural Resources Corporation bought a 50.5% majority of Camrose Resources, [10] which held a majority stake in the Kalukundi mine. In 2012, ENRC finished acquiring the rest of Camorse. [11]

ENRC reorganized as the privately held Eurasian Resources Group in 2013. ERG acquired the rest of Africo resources in 2016. [12]

Location

The Kalukundi project is in the Kolwezi District of Katanga Province, 32 kilometres (20 mi) west of the Tenke Fungurume Mine and 65 kilometres (40 mi) by road from Kolwezi. A major power line runs through the south of the Kalukundi area. The Kolwezi-Likasi railway runs 2 kilometres (1.2 mi) south of the property. [13]

An initial feasibility study was conducted between May 2004 and May 2006. Drilling indicated a reserve of 7.8 million tonnes of ore grading 2.44% copper and 0.69% cobalt in oxides at a depth of 40 metres (130 ft) to 130 metres (430 ft). This was considered a conservative estimate of resources. [13]

The Kalukundi mine is directly contiguous to the Kii, Mashitu, and Pangalume resources, which are held by La Congolaise de Mines et de Développement (Comide), a company also majority owned by the Eurasian Resources Group. [14]

Development plans

The plan used as the basis for the 2006 feasibility study was to produce 800,000 tonnes of ore per year, giving an estimated annual yield of 16,400 tonnes of copper and 3,800 tonnes of cobalt. Ore would be extracted by a contractor using conventional open pit selective exploitation, with multiple pits and multiple cut-back to ensure a steady supply of ore. A revised study was commissioned in June 2011 to investigate a 50% higher rate of ore production, and to take into account the much higher metal prices. [13]

Eurasian Resources Group (ERG) - camrose resources subsidiaria Since 2016 ERG won the licitory about Kalukundi.

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<span class="mw-page-title-main">Gécamines</span> Congolese commodity and mining company

La Générale des Carrières et des Mines (Gécamines) is a Congolese commodity trading and mining company headquartered in Lubumbashi, in the Katanga region of the Democratic Republic of Congo. It is a state-controlled corporation founded in 1966 and a successor to the Union Minière du Haut-Katanga. Gecamines is engaged in the exploration, research, exploitation and production of mineral deposits including copper and cobalt.

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Camrose Resources Limited (Camrose) was a company owned by Dan Gertler, an Israeli businessman, the founder and President of the DGI Group of Companies. Camrose's other assets included a "64% stake in Canada listed Africo Resources which held a 75% interest in the Kalukundi Mine's exploitation licence as well as a 56% indirect interest in Comide Sprl, which held the exploitation licence for Mashitu, Pangalume and Kii tenements."

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References

  1. ↑ "Investor Fact Sheet" (PDF). Africo Resources. September 2008. Archived from the original (PDF) on 2011-09-09. Retrieved 2011-11-13.
  2. ↑ Barry Sergeant (14 Sep 2007). "Kalukundi copper/cobalt swindle reversed?". MineWeb. Archived from the original on 2012-06-12. Retrieved 2011-11-13.
  3. ↑ York, Geoffrey (2020-11-12). "B.C. miner's shareholders win big in Congo bribery case". The Globe and Mail. Retrieved 2022-08-03.
  4. ↑ "Tokyo Sexwale and the DRC's Mr Grab". The Mail & Guardian. 2012-08-17. Retrieved 2022-08-03.
  5. ↑ "Kalukundi contract review concluded". Mining Journal. 6 Feb 2009. Archived from the original on 29 January 2013. Retrieved 2011-11-13.
  6. ↑ Tokar, Dylan (2020-11-05). "Bribery Victims Prevail in Restitution Claim Against Hedge Fund". WSJ. Retrieved 2022-08-03.
  7. ↑ Rothfeld, Michael; Matthews, Christopher M. (2016-09-29). "Och-Ziff to Pay $412 Million in Bribery Case". WSJ. Retrieved 2022-08-03.
  8. ↑ Tokar, Dylan (2019-09-06). "Restitution Battle Throws Three-Year-Old Och-Ziff Settlement Into Limbo". WSJ. Retrieved 2022-08-03.
  9. ↑ Tokar, Dylan (2020-11-13). "13 Years After a Bribery Scheme Derailed a Mining Project, Its Investors Get Paid". WSJ. Retrieved 2022-08-03.
  10. ↑ Onstad, Eric (2010-08-20). "ENRC buys majority of Kolwezi and Congo assets". Reuters. Retrieved 2022-08-03.
  11. ↑ Goodley, Simon (2012-12-28). "ENRC Congo deal is passed despite largest shareholder's lack of support". the Guardian. Retrieved 2022-08-03.
  12. ↑ Cornish, Laura (2016-07-11). "ERG acquires Africo Resources, strengthens Copperbelt footprint". Miningreview.com. Retrieved 2022-08-03.
  13. 1 2 3 Lawrence Williams (14 Jun 2011). "New 50% bigger Kalukundi copper/cobalt project study awarded". MineWeb. Retrieved 2011-11-13.
  14. ↑ Newswire, PR (2010-08-20). "Eurasian Natural Resources Corporation PLC: Acquisition of 50.5% of the Shares of Camrose Resources Limited". Cision. Retrieved 2022-08-20.
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