Mining

“Fast track” on track . . .

“DRC Ministry of Mines Delivers Summary Contract Review to Contract Holders”.

LONDON –  - 

The Ministry of Mines of the Government of the Democratic Republic of Congo (DRC) today announced that the next stage of the Contract Review Commission has been completed on schedule, and that the Summary Findings of the Commission are now signed and available to those companies whose contracts are under review.

This follows on from the discussions and announcements from the Ministry at the mining industry Indaba held in Cape Town recently, when it was announced that the mining companies would be notified by 20 February, 2008.

H.E. Victor Kasongo, Vice Minister of Mines for the DRC, commented today:

"The Government is pleased to have delivered on its promise to the mining companies by presenting them with the findings of its review ahead of schedule. The DRC's goal is to work with those parties who have demonstrated good faith and best practice in their investments in the DRC, and who have delivered on their commitments. The DRC wishes to work with the mining companies to construct contracts that are just, both for the people of the DRC, for the companies who are investing in our country, and for the investors and shareholders who support the process".

Mr Kasongo held and attended a series of public and private meetings during the Mining Indaba in Cape Town, which covered a range of topics and issues, including:

• The status of the Mining Contracts Review Commission findings
• The desired framework for sustainable and long term investment in the DRC and in the mining sector in particular
• Meetings with existing and prospective investors, and with Governmental and NGO representatives

During Mr Kasongo's presentation as member of a Ministerial panel, presided over by Mr Paulo De Sa of the World Bank on Tuesday 05 February, he outlined his Government's plan to address the challenge of how to best conclude the DRC Mining Contract Review in a manner that would be most attractive to all parties. He said:

"We have been working to find ways in which companies can appeal the process, without the delays, costs and confrontation inherent in litigation and international arbitration - and, at the same time, to fast track a renegotiation of the contract.

"We intend to institute a brief and open administrative appeal process, to a specially constituted panel, through which a company can present its case for reclassification, while minimizing confrontation and shortening any delay to renegotiation."

Mr Kasongo today reiterated these points, and urged all parties to enter into the process with open minds and positive expectations, so that matters can be concluded promptly and effectively and with the least possible impact on operations and revenues.

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