BHP Billiton and AngloGold remain silent on DRC contract review

Following the publication of a review of mining contracts earlier this week by the Congolese Government, BHP Billiton and AngloGold Ashanti are working on responses, which needs to be lodged before the end of this month.

The Mines Ministry of the Democratic Republic of Congo (DRC) has reviewed 60 mining contracts but has not yet provided details of its recommendations.

Both BHP and AngloGold are remaining silent about what changes, if any, the DRC Government is demanding.

BHP is exploring for copper in the DRC and is also in the early stages of developing an aluminium smelting project.

AngloGold has been drilling for gold at Mongbwalu, in Congo’s northeastern Ituri region, since 2005.

First Quantum Minerals has conceded that the Government is demanding that the group pay the balance of an originally agreed price of $130 million for mining rights to the Kolwezi tailings project. The amount was at some point lowered to $15 million.

The review aims establish that mining contract awarded during the Congo’s war-torn years of 1998-2003 provide a fair share of mining revenues for the state.

In November of last year, it was rumoured that the commission had found that none of the contracts under review were considered “viable” in their current form.

Companies have until February 26th to respond to the findings of the report.