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Viewing cable 06KINSHASA1500, MINING SECTOR UPDATE

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Reference ID Created Released Classification Origin
06KINSHASA1500 2006-09-26 14:20 2011-08-25 00:00 UNCLASSIFIED Embassy Kinshasa
VZCZCXRO0694
RR RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #1500 2691420
ZNR UUUUU ZZH
R 261420Z SEP 06
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 4857
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHXR/RWANDA COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE
UNCLAS KINSHASA 001500 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EMIN ECON SENV ETRD PGOV CG
SUBJECT: MINING SECTOR UPDATE 
 
REF: KINSHASA 1398 
 
1. (U) Summary. During the past month several miners died in 
mining-related accidents, and two conflicts between mining companies 
and the GDRC have arisen. End summary. 
 
Mining Accidents 
---------------- 
 
2. (U) The Mayor of the Western Kasai diamond-mining town of 
Tshikapa has banned some mining operations following the September 
 
SIPDIS 
17 drowning of three underwater diamond diggers.  Such deaths occur 
frequently around Tshikapa, where most of the diamond mining is 
alluvial. The Mayor banned exploitation of the river section where 
the recent deaths occurred and all night time operations.  However, 
a Tshikapa-based American businessman told EconOff that it is 
unlikely that such an edict is enforceable.  (Note: See reftel for 
other examples of diamond-sector artisanal miners' deaths. End 
note.) 
 
3. (U) On September 14 at least four miners were killed, 16 injured, 
and many remain missing after a cave-in at a large artisanally-mined 
copper pit in Katanga province near Lubumbashi.  Metorex, a South 
African company, operates the concession adjacent to the pit (Ruashi 
Mine) and, along with other companies, buys mined ore from the 
diggers.  (Note: According to a counselor to the Minister of Mines, 
the pit is actually part of Metorex' concession, but is fenced-off 
and used only by artisanal miners. End note.)  A mining expert 
working with an American-funded NGO in Katanga said "The artisanal 
mining sector in Katanga worsens daily; this accident was waiting to 
happen." 
 
Mining Company-GDRC disputes 
---------------------------- 
 
4. (U) Metorex is facing a potential conflict with the Katanga 
government. In early September, the Governor of Katanga province 
reportedly ordered the closure of a water purification plant on the 
Ruashi River, claiming that Metorex' Ruashi mining operations, which 
include cooper and cobalt tailings processing, are polluting the 
water.  The river is a potable water source for Lubumbashi. 
 
5. (U) South African company Kumba Resources and Canadian company 
First Quantum are in a dispute with Gecamines, the DRC's copper 
mining parastatal, over the Kipushi zinc/copper mine in Katanga. 
Kumba and First Quantum claim rights to the concession, having 
announced this August their intention to reopen the mine.  Gecamines 
denies the companies' claim to the concession and in September 
launched an international tender for new joint venture partners in 
the concession. A counselor to the Minister of Mines told EconOff 
that the dispute has arisen because of the existence of two 
conflicting presidential decrees granting concession rights. 
 
6. (U) Comment: Mining accidents and conflicts between the GDRC and 
mining entities will likely continue as commodity prices 
(particularly copper, cobalt and zinc) remain high and available 
undeveloped mining sites become harder to find.  The high prices 
make the GDRC, mining companies and artisanal diggers eager to take 
advantage of potential revenues, thereby creating a race to extract 
as much ore as possible while prices are high, with many miners 
unwilling or unable to take appropriate safety precautions in their 
urgency to earn a living. The government is seeking nearly any 
opportunity possible to push mining companies to produce quickly and 
under terms as favorable as possible to the government, while paying 
little or no attention to miners' safety. End comment. 
MEECE