VZCZCXRO2601
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #0057/01 0191126
ZNR UUUUU ZZH
R 191126Z JAN 07
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 5436
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOP COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 02 KINSHASA 000057 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EMIN ECON ETRD PGOV ZI CG
SUBJECT: MINING EXTRACTS, #1 
 
REF: A.  KINSHASA 49 
 
     ¶B.  05 KINSHASA 1500 
 
¶1.  (U) Summary.  Several artisanal diamond miners died in 
mining-related accidents, and diamonds illegally exported from 
Zimbabwe are reportedly appearing for sale in the DRC. Delays in 
obtaining and importing adequate equipment is causing construction 
delays for major copper/cobalt mining projects. The GDRC is planning 
to launch new petroleum concession tender offers, although many 
concession agreements await presidential approval. End summary. 
 
Copper/Cobalt Industry 
---------------------- 
 
¶2.  (SBU) At least two of the largest copper/cobalt projects may not 
meet their initial targets of production start-up in 2008. Nikanor, 
a London Alternative Investment Market-listed company, now projects 
a 2010 operational launch date for KOV, potentially the most 
lucrative of its three copper/cobalt mines. A Phelps Dodge (PD) 
official told EconOff PD is experiencing delays too, in part because 
PD, like other copper/cobalt mining companies, cannot obtain and 
import necessary equipment and supplies as quickly as needed. Not 
only is there a shortage of needed goods, but also the GDRC is slow 
to decide which of the imported items will receive tax exoneration 
requests. 
 
Diamond Industry 
---------------- 
 
¶3.  (U) Utilizing a periodic, random scan of personnel, MIBA (the 
DRC's diamond mining parastatal) allegedly detected 136 white 
diamonds of an undetermined value in the digestive tract of one of 
its guards. The diamonds were recovered at a local hospital, and 
legal proceedings have been initiated against the guard. MIBA is 
certain the guard could not have acted alone, and is conducting an 
investigation. 
 
¶4.  (U) Newly-discovered, unpolished Zimbabwean diamonds are being 
illegally exported into the DRC for sale. One private sector contact 
told EconOff the diamonds are extremely unique, with a dark brown 
coating, and could only have come from Zimbabwe. 
 
Petroleum Industry 
------------------ 
 
¶5.  (U) The GDRC may divide the Ministry of Energy and Hydrocarbons 
into a Ministry of Hydrocarbons and a Ministry of Energy (covering 
water, electricity and other sources), according to officials within 
the Energy Ministry and in the private sector. 
 
¶6.  (U) A Ministry of Energy official told EconOff the GDRC hopes to 
launch tender offers in February for several petroleum exploration 
blocks in the DRC's Central Basin, a region of potential oil 
reserves including Bandundu and Equateur provinces. The official 
said a Brazilian laboratory is examining petroleum samples from the 
Central Basin and will propose to the Energy Ministry the number and 
layout of the concession blocks. 
 
¶7.  (U) Several pending petroleum concession agreements continue to 
await presidential approval, including deals for exploration on and 
around Lake Albert and for onshore exploration in Bas Congo 
province. 
 
Mining Accidents 
---------------- 
 
¶8.  (U) Yet another cave-in has killed at least 15 artisanal diamond 
diggers and left 30 or more missing, in the Tshikapa, Western Kasai 
alluvial diamond mining area. The ravine where the hundreds of 
diggers were working, itself created by water erosion, collapsed 
December 5, likely caused in part by heavy rains. 
 
¶9.  (U) CHEMAF, an Indian-owned mining company, is sponsoring the 
relocation of several hundred artisanal miners from one of its open 
pits near Lubumbashi, Katanga province, following a violent December 
28 conflict between the miners and local police (reftel A).  About 
200 diggers are being moved to an alternate mine site, and CHEMAF is 
giving each miner some food and about USD 40.  According to 
Congolese media, CHEMAF has selected five sites for this planned 
relocation of about 1,500 artisanal miners. 
 
Mining Company-GDRC Disputes 
---------------------------- 
 
¶10.  (SBU) South African mining company Metorex says there is no 
merit to the GDRC's claim that Metorex was polluting the Ruashi 
 
KINSHASA 00000057  002 OF 002 
 
 
River in Katanga province (reftel B).  A Metorex official told 
EconOff that GDRC officials visited several mining companies in late 
2006 in connection with such claims and that the visits were 
perceived to be little more than "tax collection efforts." 
 
MEECE