Metorex' reaction on Kabwelulu

[vanbrussel]

Metorex was, however, comfortable with the political situation in the DRC, which it believed to be stable, and also comfortable with the mining code, which it believed to be mature

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DRC GOVT 'SHORTSIGHTED' IF IT STOPS CONCENTRATE EXPORT, SAYS METOREX CEO

 

By: Martin Creamer Published: 23 Aug 07 - 15:26

 

The Democratic Republic of Congo (DRC) government would be "shortsighted" if it disallowed the export of concentrate while it had insufficient smelter capacity, Metorex CEO Charles Needham said on Thursday.

 

Needham said that Metorex currently had a dispensation to move its concentrates through to Zambia.

 

"Going forward, we would like to run the concentrator plant when Ruashi Two comes on stream, because it amounts to an incremental 10 000 t of copper a year," he said.

 

But to be able to do that, the company would have to obtain further dispensation.

 

"Until the DRC is equipped with sufficient smelter capacity, I think that the government would be shortsighted not to continue to permit the export of that concentrate for the reasons of royalties, taxes, employment, etc," Needham said.

 

"We believe that with some careful discussion with the governor and the government, we will get this dispensation," he said.

 

Although the border had been closed for a while, it had reopened and Metorex material was permitted to flow from the DRC to Zambia.

 

"There are a few more regulations that have been introduced and there are more costs relating to moving the material out, and it relates to sampling and getting sample certificates and gettiing assay certificates, on the material you are sending out," he said.

 

The export of raw ore from DRC had been outlawed.

 

"We are beneficiating. We are getting our material out. Hence the need and the urgency to get phase two on stream and to produce cathode in the country," he said.

 

He said that operating in the DRC had been a learning curve for Metorex.

 

What had become clear was that things tended to take longer than originally envisaged.

 

Soucing of materials, getting materials through the border, constructing and becoming operational took longer than envisaged and, in some instances, required more money.

Metorex was, however, comfortable with the political situation in the DRC, which it believed to be stable, and also comfortable with the mining code, which it believed to be mature.

 

Operationally, there were also certain skills upon which it drew as intensively as it possibly could.

 

http://www.miningweekly.co.za/article.php?a_id=115347

(Audio clip 2:14 on webpage)