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UPDATE 3-Congo seeks contract changes in mines review

Thu Mar 20, 2008 10:50pm IST
 
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(Adds company comment, ministerial task force, details)

By Joe Bavier

KINSHASA, March 20 (Reuters) - Congo's mines review panel recommended steps on Thursday to overhaul the vast central African country's minerals sector after years of war and neglect, including renegotiating several major mining contracts.

In its long-awaited report, the panel appointed by President Joseph Kabila's government urged the renegotiation of contracts between state mining companies and mining majors BHP Billiton (BLT.L: Quote, Profile, Research), Freeport McRoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research) and diamond giant De Beers.

"The government of the Republic intends from now on to ensure efficient management and adequate control of the mining sector so that Congolese mines truly and fully benefit the Congolese nation," said the report, published on the Mines Ministry Website www.miningcongo.cd.

The commission was created last year to overhaul 61 contracts including many signed during the country's 1998-2003 war, which dragged in six foreign armies from across central and southern Africa, lured in part by Congo's mineral riches.

The report was dated November 2007 and broadly reflected a draft summary document leaked that month by officials in Congo's capital Kinshasa. Letters have since been sent to individual companies for feedback, and some companies have begun new talks.

A "task force" of four senior ministers will oversee the next steps in the mines review process, during which companies are free to submit any fresh factual data, the ministry said.

  Continued...

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