CAMEC loses DRC Katanga licences

CAMEC, the copper and cobalt miner with a presence in five African countries, has encountered serious difficulties in its proposed acquisition of Katanga Mining, which operates a copper-cobalt mine complex near Kolwezi, in the Katanga Province of the Democratic Republic of Congo (DRC).

The DRC Government has announced that it is revoking CAMEC’s licences for mining concessions in the Katanga Province.

Licences for the province are currently held by Boss Mining (a CAMEC subsidiary), and Mukondo Mining, which is jointly owned by Savannah Mining and Boss Mining.

The decision is expected to cause a fall in CAMEC’s share price, which in turn will reduce the value of the company’s all share bid for Katanga Mining, which is already considered insufficient by some analysts.

According to a statement issued by the DRC Public Prosecutor’s department, the decision to revoke the licences has been taken because of serious irregularities in the original issuing process.

CAMEC’s difficulties with the government of the DRC are rumoured to centre on a director of the company, who has recently been declared persona non grata in the DRC.

However, the company has responded to the Public Prosecutor’s statement by saying that it is confident it will be able to repel attempts to revoke its licences.