Iron ore rises on pre-holiday restocking, China stimulus hopes
"Winter restocking of iron ore among steel mills is still underway, so we believe ore prices will find some support in the near term," analyst says.
The government of the Democratic Republic of Congo is opposed to a proposal by Chemaf SA to sell its copper and cobalt mines in the country to China’s Norin Mining, according to a document seen by Reuters.
Chemaf, a long-time partner of commodities trader Trafigura, said in June it had agreed to sell its mines in Congo to the unit of Chinese state-backed defence and industrial giant, China North Industries Corp (Norinco).
Chemaf put itself up for sale last year due to a cash crunch that was stalling the expansion of its Etoile and Mutoshi projects in Congo as cobalt prices slumped.
Kizito Pakabomba, Congo’s mines minister, said the deal is in breach of state miner Gecamines’ lease agreements with Chemaf and recommended that the transaction be stopped, according to the minutes of a council of ministers’ meeting on Friday seen by Reuters.
The council of ministers adopted the ministry of mines’ recommendation that the transaction be halted.
“Considering the flagrant violation of the clauses of the farm-out contract between Gecamines and Chemaf, it was recommended that the current transaction be halted following Gecamines’ opposition,” the minutes said.
A Chemaf spokesperson said the company would continue to work with authorities in Congo to progress the signed transaction.
Gecamines said last month that it owns mineral rights to the Chemaf mines and was also opposed to the deal with Norin.
China’s miners, most of which are state-backed, have become the biggest investors in Congo as the world’s second-largest economy aggressively pursues copper and cobalt supplies for its rapidly expanding electric vehicle industry.
Norinco already owns the Comica and Lamikal copper and cobalt operations in Congo, the world’s No. 1 cobalt supplier.
(By Sonia Rolley and Felix Njini; Editing by Kirsten Donovan)
Comments
Nomvuyo
I am concerned that the DRC is enriching other continents, charity begins at home. I once visited DRC its not impressing at all , They just enrich the world, I am asking myself what is it that they want to benefit from what they do. I am so concerned about hunger and death occurring due to different reasons. There is no infrastructure., unemployment,etc. Please Africans let us wake up . If we want investors they must not only loot and go.
Thank you