Kolwezi tailings project
Encyclopedia
The Kolwezi tailings project is a major project in the Kolwezi
mining area of the Democratic Republic of the Congo
(DRC) to recover copper from the tailings, or processed ore, from mining in the region since the 1950s.
The project was developed by the Canadian mining companies Adastra Minerals
and then First Quantum Minerals
between 2004 and 2009, when the DRC government revoked First Quantum's license.
of the DRC. It has been a mining center for 100 years.
The main river valley is filled with tailings, and there are extensive pits, waste rock dumps and tailings deposits.
The air is polluted by wind-blown tailings.
Infrastructure such as roads, water supply and management, schools and hospitals was once good, but as of 2004 it was poorly maintained.
The state mining company Gecamines
no longer provided the high level of social support of the past, and there was very high unemployment. The labor force is skilled and had high expectations of the tailings recovery project.
started operating a mineral concentrator at Kolwezi in 1952, taking ores from the western Katanga open pit mines and producing copper concentrates. The tailings still contain significant amounts of metal.
The project entails construction of a plant to process the copper and cobalt tailings in the Kingamyambo tailings dam and the Musunoi river tailings, which have an estimated total metal content of 1,676,000 tonnes of copper and 363,000 tonnes of cobalt. A Durban company, Metso ND Engineering, was selected to build the equipment.
It was expected to produce around 70,000 tonnes per year of copper metal and up to 14,000 tonnes per year of cobalt hydroxide.
acquired the right from the DRC Ministry of Mines to exploit the tailings. In February 2006 it was reported that Adastra was putting together the financing to build a tailings recovery plant.
At that time, Adastra was facing a hostile takeover bid from the larger First Quantum Minerals
.
Following the take-over, the project was operated by a consortium of First Quantum Minerals (65%), with Gecamines and institutional investors having minority shares.
In August 2009, the DRC government revoked First Quantum's license due to a dispute over renegotiating the contract.
First Quantum stopped operations in September 2009, throwing about 700 people out of work.
First Quantum had spent $750 million on acquiring and developing the property.
First Quantum took out an action against the DRC government in the International Chamber of Commerce Court of Arbitration.
In June 2010 the Financial Times of Canada reported that the property was now owned by a British Virgin Islands
company called Highwind Properties. Highwinds was allegedly linked to a major shareholder in Nikanor
, a DRC-based copper mining company that had merged with Katanga Mining
in 2007.
In August 2010 it emerged that the Kazakh Eurasian Natural Resources Corporation
(ENRC) had acquired the property through its British Virgin Islands subsidiary.
First Quantum alleged that ENRC had misled investors by failing to tell them of the disputed ownership.
Kolwezi
Kolwezi is a city in Katanga Province in the south of the Democratic Republic of the Congo, west of Likasi. It is home to an airport and a railway to Lubumbashi. The population is approximately 418,000....
mining area of the Democratic Republic of the Congo
Democratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
(DRC) to recover copper from the tailings, or processed ore, from mining in the region since the 1950s.
The project was developed by the Canadian mining companies Adastra Minerals
Adastra Minerals
Adastra Minerals Inc , was a London-based mining company with notable operations in central Africa , particularly in copper, cobalt and zinc exploration...
and then First Quantum Minerals
First Quantum Minerals
First Quantum Minerals Ltd. is a Vancouver, British Columbia based mining and metals company whose principal activities include mineral exploration, development and mining....
between 2004 and 2009, when the DRC government revoked First Quantum's license.
Location
Kolwezi is a town of about 200,000 people in the Katanga ProvinceKatanga Province
Katanga Province is one of the provinces of the Democratic Republic of the Congo. Between 1971 and 1997, its official name was Shaba Province. Under the new constitution, the province was to be replaced by four smaller provinces by February 2009; this did not actually take place.Katanga's regional...
of the DRC. It has been a mining center for 100 years.
The main river valley is filled with tailings, and there are extensive pits, waste rock dumps and tailings deposits.
The air is polluted by wind-blown tailings.
Infrastructure such as roads, water supply and management, schools and hospitals was once good, but as of 2004 it was poorly maintained.
The state mining company Gecamines
Gécamines
Gécamines, or La Générale des Carrières et des Mines, is a state-owned mining company in the Democratic Republic of Congo . Its principal products are copper , cobalt and zinc...
no longer provided the high level of social support of the past, and there was very high unemployment. The labor force is skilled and had high expectations of the tailings recovery project.
Project
The state-owned GécaminesGécamines
Gécamines, or La Générale des Carrières et des Mines, is a state-owned mining company in the Democratic Republic of Congo . Its principal products are copper , cobalt and zinc...
started operating a mineral concentrator at Kolwezi in 1952, taking ores from the western Katanga open pit mines and producing copper concentrates. The tailings still contain significant amounts of metal.
The project entails construction of a plant to process the copper and cobalt tailings in the Kingamyambo tailings dam and the Musunoi river tailings, which have an estimated total metal content of 1,676,000 tonnes of copper and 363,000 tonnes of cobalt. A Durban company, Metso ND Engineering, was selected to build the equipment.
It was expected to produce around 70,000 tonnes per year of copper metal and up to 14,000 tonnes per year of cobalt hydroxide.
Ownership
In June 2004, the Canadian Adastra MineralsAdastra Minerals
Adastra Minerals Inc , was a London-based mining company with notable operations in central Africa , particularly in copper, cobalt and zinc exploration...
acquired the right from the DRC Ministry of Mines to exploit the tailings. In February 2006 it was reported that Adastra was putting together the financing to build a tailings recovery plant.
At that time, Adastra was facing a hostile takeover bid from the larger First Quantum Minerals
First Quantum Minerals
First Quantum Minerals Ltd. is a Vancouver, British Columbia based mining and metals company whose principal activities include mineral exploration, development and mining....
.
Following the take-over, the project was operated by a consortium of First Quantum Minerals (65%), with Gecamines and institutional investors having minority shares.
In August 2009, the DRC government revoked First Quantum's license due to a dispute over renegotiating the contract.
First Quantum stopped operations in September 2009, throwing about 700 people out of work.
First Quantum had spent $750 million on acquiring and developing the property.
First Quantum took out an action against the DRC government in the International Chamber of Commerce Court of Arbitration.
In June 2010 the Financial Times of Canada reported that the property was now owned by a British Virgin Islands
British Virgin Islands
The Virgin Islands, often called the British Virgin Islands , is a British overseas territory and overseas territory of the European Union, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S...
company called Highwind Properties. Highwinds was allegedly linked to a major shareholder in Nikanor
Nikanor Plc
Nikanor Plc was a copper and cobalt mining company active in Katanga Province, Democratic Republic of the Congo. In January 2008 it was merged into Katanga Mining...
, a DRC-based copper mining company that had merged with Katanga Mining
Katanga Mining
Katanga Mining is a mining company in the Katanga Province of the Democratic Republic of the Congo , majority-owned by Swiss commodity trader Glencore.-DCC:...
in 2007.
In August 2010 it emerged that the Kazakh Eurasian Natural Resources Corporation
Eurasian Natural Resources Corporation
Eurasian Natural Resources Corporation PLC is a diversified natural resources company headquartered in London, United Kingdom. It has activities in mining, processing, energy, logistics and marketing....
(ENRC) had acquired the property through its British Virgin Islands subsidiary.
First Quantum alleged that ENRC had misled investors by failing to tell them of the disputed ownership.