Provincial authorities of Congo's mineral-rich Katanga province
have banned over a dozen mining companies from exporting minerals,
accusing them of not supporting agricultural projects in the
province, officials said Wednesday.
Speaking by telephone from Lubumbashi, the provincial capital,
an official with Congo's state mining company Gecamines told Dow
Jones Newswires at least 16 mining companies had been prohibited
from exporting minerals until they put in place agriculture
projects to promote corn growing.
"The ban was announced by the province this week, we do not know
how long it will last," he said.
Katanga produces a bulk of Congo's copper and cobalt and most
mineral exports from the province are shipped across the Zambian
border through Eastern and Southern African ports to the U.S., E.U.
and Asian markets.
In December last year, Katanga provincial authorities announced
an agricultural policy involving mining companies in corn
production in a bid to boost food security in the province.
Some companies like U.S.-based Freeport McMoRan (FCX), owners of
the Tenke Fungurume copper/cobalt project, have since complied and
planted at least 500 acres of corn around its mining areas.
Some of the companies that have been prohibited from exporting
minerals are mostly smaller Chinese-owned companies; among the
large mining companies that have been affected by the ban is
Toronto-listed Katanga Mining (KAT.T), owners of the Kamoto Copper
mine.
Gecamines holds a minority stake in Katanga. Company officials
couldn't comment immediately.
Small-scale mining companies and traders account for a bulk of
Congo's mineral exports.
Katanga's mineral production has been on the rise since 2006 due
to a surge in investments following the end of civil wars and
political instability in most parts of the country.
Analysts project Congo's annual copper output could hit at least
400,000 metric tons by 2012.
-By Nicholas Bariyo, contributing to Dow Jones Newswires;
256-75-2624615; bariyonic@yahoo.co.uk