Gecamines In Talks To Sell Kamoto Copper Stake


News: The Democratic Republic of Congo (DRC) ' s state-owned mining company Gecamines has stated that it may need to sell its 20% stake in domestic mining company Kamoto Copper in a bid to raise funds, Mineweb reports. Gecamines c hairman Albert Yuma stated that the company had been in discussions with 14 potential buyers but that the project ' s Swiss majority-owner Katanga Mining would have the first refusal. Katanga is owned by Swiss mining company Glencore Xstrata .

BMI View: The DRC's vast mineral resources will continue to attract greater international interest, given the country's huge untapped and high-grade reserves and improving, though still very poor, business environment. In terms of growth potential, the industry is one of the most attractive in Sub-Saharan Africa (SSA). We forecast the value of the sector to rise sharply from 2011 levels to US$2.5bn in 2017, mostly driven by copper and gold production. However, while we expect substantial growth in mining output, risks to investment remain numerous, with security concerns and the lack of adequate infrastructure most pressing.

This article is tagged to:
Sector: Mining
Geography: Congo, Switzerland