Kinross Gold visits Gecamines and makes an offer to rehabilitate the Kolwezi installations.September 1996: Kinross Gold visits Gecamines and makes an offer to rehabilitate the Kolwezi installations.
30 Oct 1996: Gecamines puts Kolwezi out to international tender and invites bids from 42 companies in the non ferrous mining industry. Kinross Gold is short listed.
Feb 1997: Kinross visits Kolwezi and meets Gecamines management at Lubumbashi.
27 February 1997: Gecamines signs a Preliminary Agreement with Iscor Mining for the Kamoto underground mine; the concentrator (KTO 2) and the Luilu metallurgical plant.
Préalablement, GCM avait déjà négocié avec Iscor Ltd. un Accord Préliminaire concernant presque les mêmes actifs (notamment : a) mine souterraine de Kamoto, b) concentrateur de Kamoto KTO 2, et c) l'usine métallurgique de Luilu) ; ledit Accord avait été signé le 27 février 1997, les négociations avec Iscor semblent actuellement dormant mais GCM n'avait pas achevé formellement le processus de résiliation dudit Accord pendant que les négociations avec KFL avaient eu lieu (voir FA Iscor).
The South African company, Kumba Resources, later acquired Iscor's 30 per cent stake in the Kamoto mine.
May 1997: overall proposal for the rehabilitation of Kolwzi drawn up. Kinross Gold describes itself as a Canadian/American company. It provides its annual report, financial information from 17 May 1997, a report by the US Security and Exchange Commission. One of Kinross Gold's shareholders, Kiewit Construction Group is to participate in the rehabilitation of the installations. Proposal included the following installations:
1. Filière KOV-KZC-Luilu and/or Shituru
2. Filière DIMA-KTC (DIMA1 et DIMA 2) - Luilu and/or Shituru
3. Filière KTO-KTC (KTO)-KTC (KT01 and KT02) Luilu and Shituru
4. Les ateliers de l'Ouest (AO)
5. Les services de soutien (EM1/O-EMT/O-MS/O-EMT/Labo's/O
6. Les gisements de Tilwezembe
It notes that the underground Kamoto mine has been assigned to the South African company, ISCOR, with whom Kinross has good relations.
A confidentiality agreement was signed.
5 June 1997: a Mining Convention and Joint Venture Agreement was drawn up in Kinshasa between Gecamines and the Kinross Gold Corporation for the rehabilitation and exploitation of the Kolwezi concessions and the installations of Kolwezi. Kinross would have had 51 per cent of the shares of the joint venture: SARL Kamoto Copper Company but the document was not signed.
30 September 1997: étude préliminaire économique de la rehabilitation des installations des la Gecamines a Kolwezi prepared by a consultant (Urbain Brabants) for Kinross Gold. The study calculates the IRR using the base price of 2000 US$/TCu and 9,06 US$/lb Co - which is it states a reasonable estimate. This would give an annual turnover of +/- $681 million, annual profits in the order of 160$ million and the reimbursement of investments -/+ 2 years and 4 months; and an IRR estimated at about +/- 79%.
If the Tilwezembe ore body that is rich in cobalt is included in the JV it would provide an additional 2000 tons of cobalt a year and considerably improve the rate of return of the project. A turnover of +/- $721 millions; profits in the order of $200 million; reimbursement of invested capital and +/- 1 year and 1 month. An IRR estimated +/- 144%
8 Oct 1997: Mr Ditto as Chairman of Kinross Gold offering to pay one million USD up front 30 days after the Convention is signed.
28 October 1998: presidential decree Décret No. 142 approuvant la Convention relative au régime fiscal et douanier et autres garanties spécifiques applicables au projet de réhabilitation de la mine de Kamoto.
1998: Kinross visit to Gecamines
2 July 2001: Mr Ditto restarted negotiations ostensibly on behalf of Kinross Gold - He visits Lubumbashi and Kolwezi and has a meeting with Gecamines' management committee.
16 July 2001: Kinross makes a proposal for Joint Venture agreement. This suggests that negotiations for the Kamoto mine were underway at a time when his Kinross Forrest partner, George Forrest, was still the Chairman of Gecamines [a position Mr Forrest held until August 2001].
July 2001: Kinross Forrest Limited (KFL) established.
La société semble avoir été crée en 2001 mais elle n'a pas été " organisée " (émission des actions, etc.) jusqu'en juillet 2004. (Note : les statuts, Préambule A. indiquent que la société avait été crée selon " Letter of Agreement " du 11 juillet 2001 ; elle manque dans le dossier, obtenir une copie). On doit déterminer si KFL avait une existence juridique /capacité légale au moment où l'AP et la Convention de JV ont été signés.
KFL et GCM reconnaissent ce fait et que la situation juridique avec Iscor n'est pas encore réglée ; l'Article 12.3 de la Convention de JV dit : " Les Parties ont connaissance de la situation juridique de la mine Kamoto et s'interdisent de formuler à l'endroit de l'une ou l'autre partie une quelconque revendication qui pourrait en découler ".
4º Situation juridique de l'Accord avec Iscor Ltd.
Eventuelle Résiliation formelle de l'Accord et Annulation du Décret No. 142 du 28 octobre 1998 approuvant la Convention relative au régime fiscal et douanier et autres garanties spécifiques applicables au projet de réhabilitation de la mine de Kamoto (voir FA Iscor)
27 September 2001: letter from Ditto sent on Kinross Gold letterheaded paper to Mr Yumba Monga, the Chairman of Gecamines Management Committee. Mr Ditto refers to a meeting that had taken place on 2 July 2001 with Gecamines stating "It is a pleasure to reconfirm after our visit to Lubumbashi and Kolwezi and negotiations with the Comité de Gestion during the week of July 2 2001 our interest to work with you." The letter headlined " Our proposition of 16 of July 2001" suggests that negotiations for the Kamoto mine were underway at a time when his Kinross Forrest partner, George Forrest, was still the Chairman of Gecamines [a position Mr Forrest held until August 2001]. Mr Ditto concluded his letter saying "We are internationally known as a serious company registered as a worldwide mining company and quoted on the New York and Toronto stock exchange. We are in no way a Mr in between company without finance."
10 October 2001: Mr Ditto and George Forrest send another letter this time in the name of a company called Kinross Forrest Limited (KFL) referring to their previous correspondence of 27 September sent on Kinross Gold letterheaded paper.
15 October 2001: Proposal for Joint Venture Agreement between KFL and Gecamines submitted
9 October 2001: Simon Tuma-Waku Bawangamio, the Minister of Mines, sent a memorandum to President Kabila, the terms of this offer, which divided the shares 75 per cent to KFL and 25 per cent to Gecamines, were deemed inadequate by the then Minister of Mines. He warned the Government that it had not formally revoked the pre-existing Kamoto contract with Kumba Resources.
October 2002: The third UN Panel reported that the deal, which would have brought $1bn of investment, was thwarted by Mr Forrest. Kinross Gold Corporation was listed in Annex 3 of the 2002 UN Panel report. Mr Forrest was placed on a list of persons for whom financial and travel restrictions should be imposed. Mr Ditto
June 2003: a confidentiality agreement was signed between Gecamines and KFL, Art Ditto signed this document as President of KFL, and Malta David Forrest as Managing Director of KFL, Nzenga Kongolo [who now works for KCC], the Administrateur Délégué and Twite Kabamba, the Chairman of the Board signed on behalf of Gecamines. The agreement gave KFL and its agents access to all of Gecamines' information about Group West concessions including "topographical maps, geological descriptions, calculations of mineral reserves, metallurgical work, provisional flow sheets, titles by virtue of which Gecamines held these mining concessions, all other models, brevets, all the results of exploitation, sales or commercial contracts, development strategies "
24 June 2003: a Memorandum of Agreement was drawn up between KFL and Gecamines for the rehabilitation of Kamoto underground mine, and the rehabilitation and development of Dima, KOV, T17 or Kananga. KFL and Gecamines agreed, subject to confirmation by the Minister of Mines and Hydrocarbures, to create the Kamoto Copper Company "KCC" an SARL to mine and process ore located in the Groupe Ouest, of Gecamines at Kolwezi.[Accord Preliminaire No 595/8140/SG/GC/2003]
25 June 2003: The agreement was approved by the then Minister of Mines, Jean Louis Nkulu Kitshunku [who now works for STL.]
4 July 2003: an amendment to the Memorandum of Agreement between KFL and Gecamines was signed for the exploitation of the Group West concessions which modified the agreement to cover the rehabilitation of the Kamoto underground mine and the rehabilitation and development of an open cast mine as a source for oxides (Dikuluwe, Mashamba, T17 or any other ore body to be agreed between the parties during negotiations of the definitive agreement that is able guarantee a sufficient quantity of oxides to ensure the profitability of the project). The rest of the agreement remained unaltered.
February 2004: the Kinross Forrest Joint Venture was approved and the contract was signed. Kinross only reported on its participation, and the ownership structure, in its 2004 Annual Report
July 2005: ????
2 Aug 2005: Balloch Resources Ltd. (TSX VENTURE:BAH) announced that it has been granted an option to purchase 100% of the outstanding shares of Kinross Forrest Ltd. ("KFL"), the owner of a 75% interest in the Kamoto joint venture (the "Kamoto JV") by the shareholders of KFL, pursuant to an option agreement dated July 29, 2005 (the "Option Agreement"). The shareholders of KFL (the "Optionors") are George Forrest International Afrique S. PRL ("GFI") as to 40%, Kinross Gold Corporation ("Kinross") as to 35% and Tain Holdings Limited ("Tain") as to 25%.
4 August 2005: President Kabila ratified the joint venture agreement
TORONTO, Sept. 8: /CNW/ - Kinross Gold Corporation (TSX: K, NYSE: KGC) ("Kinross") announced today that it has sold its 5,751,500 shares in Katanga Mining Limited for proceeds of approximately CDN$34.8 million through a private placement.
30 November 2005: Balloch Resources held a special shareholders meeting to ratify and approve the purchase of Kinross Forrest. Balloch also changed its name to Katanga Mining Limited and Kinross Forrest shareholders Robert M. Buchan (former President of Kinross Gold), Arthur H. Ditto and George A. Forrest were elected to Katanga's Board of Directors.
Pursuant to its September 2, 2005 agreement, by December 13, 2005 Katanga Mining Ltd. had purchased a 23.33% share interest from Kinross Gold Corporation for $5.45 million, leaving Kinross with 11.67% of Kinross Forrest until such time as Katanga exercises its remaining options.
10 July 2006: Kumba Resources told the Belgian Magazine Trends that it was still considering its legal options over its claim. [Erik Bruyland, Le groupe minier sud-african Kumba envisage des actions en justice pour la mine de Kamoto, Trends de Bruxelles original in Dutch]
Further links on this history
Mis en ligne le 25/01/2007 par Pierre Ratcliffe. Contact: (pratclif@free.fr)