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Discussion Starter · #1 ·
S.Korea says seeking $1 bln Congo mining deal
By Katrina Manson

LUBUMBASHI, Democratic Republic of Congo (Reuters) - A consortium of South Korean companies will seek a minerals-for-infrastructure deal in Democratic Republic of Congo that could be worth $1 billion, Congolese and South Korean officials told Reuters late on Friday.

The proposed deal -- involving refurbishment of a copper mine and construction of an Atlantic deepwater port -- would bolster South Korea's bid to secure long-term access to metals while speeding Congo's development, South Korean ambassador to Congo Kim Sung-chul said.

"We were more poor than Congo in the 1960s, now we are chairing the G20. This change was possible only thanks to support from outside and we think it's high time we repay that," he said.

Kim is leading a delegation of executives from South Korean firms Samsung, Hyundai, Bosco, Daewoo, and Taejoo Synthesis Steel to Congo mining sites.

He said a consortium of South Korean companies, including Taejoo, was seeking to form a joint-venture with Congo's state-owned miner Sodimco to refurbish the disused Musoshi copper mine at a cost of $300 million.

He said the deal would also involve South Korea's Eximbank loaning $150-$200 million to South Korean firms to fund a wastewater treatment plant in Kinshasa to serve 2 million people -- the cost of which would be recouped from future revenues from the mine.

DEEP-SEA PORT

He added that South Korea had also selected Hyundai, Bosco and STX to build a deep-sea port at Banana on Congo's Atlantic coast, which would cost $500 million and take four years to complete once work starts.

Some $370 million of the cost of the port would be recouped by a build-operate-transfer deal, he said, and South Korea is also asking Congo to provide mineral resources to cover the remaining $130 million.

The governor of Congo's minerals-rich southern Katanga province confirmed the mine deal proposal.

"They so far have Musoshi mine. It's a very good mine, a very big mine," Governor Moise Katumbi told Reuters.

Katumbi said the mine -- now waterlogged and in ill-repair -- was once run by a Japanese consortium and closed during the global financial crisis that sent copper prices tumbling and put 300,000 Congolese out of work.

Seul Chul-hee, head of Taejoo in Congo said Congo's Sodimico was likely to take a 35 percent stake in the mine, and South Korean companies the remainder.

"Now we are making the consortium - it is a big group," he said, adding he hoped Congo would also suggest other mine sites in future in exchange for which South Korea could build small-scale hydroelectric plants.

He said a study due in two weeks was likely to show the mine contained less than previous reserve estimates, which stood at 1.4 million tonnes -- a factor that could affect coming negotiations over the deal.

The group also visited Anvil Mining, in which Swiss metals trader Trafigura has a 36 percent stake, and Glencore-controlled Katanga Mining, but officials gave no details of any potential deals with the two.

The talks come after Congo agreed a $9 billion infrastructure-for-mines deal with China in 2008 that was later reduced to $6 billion following concern the country was taking on too much debt.
 

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Discussion Starter · #2 ·
After the confusion of the terms, Western institutions strong arming the Congolese, the mismanagement of funds and the yet to be released $5 billion from the Chinese deal - I am not sure if this will work out. S. Korea and USA have a master/student relationship so maybe they will be given the go ahead but I am not sure how both sides will execute this.
 

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interesting report mate.
What ever deal is made and Moise is in charge I
think it will work good for us.

Any report or news on when the 6 or 5 billion er going to be realist for the
china - congo deal?
 

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Mutu ya Chuma.
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Oh, so thats what the human scum (Joka) went to South Korea for.

Also the visit of a strong South Korean businessmen in Lubumbashi to meet with the governor was about. The S.Korean ambassador quote "Mining talks" among other things.


S-Korea wont be given hard time since its a US student.
 

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Mutu ya Chuma.
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DEEP-SEA PORT

He added that South Korea had also selected Hyundai, Bosco and STX to build a deep-sea port at Banana on Congo's Atlantic coast, which would cost $500 million and take four years to complete once work starts.

Some $370 million of the cost of the port would be recouped by a build-operate-transfer deal, he said, and South Korea is also asking Congo to provide mineral resources to cover the remaining $130 million.

They need to start this thing as soon as possible. at earliest next January or late March.
 

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Discussion Starter · #7 ·
$500 million is not a lot for a port. Will it be small?
It will be bigger than both of the current ports of Matadi and Boma, which are neither deep ports or modern. It will enable much larger ships to dock in the DRC coast, hopefully bigger taxes too (although this will only line certain people's pockets). Popa, you should try being Congolese for a week, you will either lose weight or lose some hair.

Oh, so thats what the human scum (Joka) went to South Korea for.
:lol:
 

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Hmmm, they are upgrading Ghanas port in Tema and thats costing $500 million, so building one from new for $500 million is amazing.
 

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Discussion Starter · #9 ·
interesting report mate.
What ever deal is made and Moise is in charge I
think it will work good for us.

Any report or news on when the 6 or 5 billion er going to be realist for the
china - congo deal?
with the China deal, they are waiting on China's Eximbank to complete the feasibility study on the mines that they were to use as guarantees. They have had about two years to make this happen but there has been a lot of stuff that has gone on in the background. It is hard to work out what is happening but I am personally writing that deal off, the western pressure alone was too much to deal with.

These same westerners tried to put pressure on Angola but Dos Santos moved too quick at that time and the reconstruction of Angola sponsored by Oil and China. They used the same excuse then saying Angola could not sign the Oil for infrastructure deal due to adding more debt. DRC were unlucky in that the international mafia (IMF, Uncle Sam, that small country in Europe) were well prepared.
 

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Mutu ya Chuma.
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Hmmm, they are upgrading Ghanas port in Tema and thats costing $500 million, so building one from new for $500 million is amazing.
Agree that the port for $500 is a small amount for a deep sea port, But its going to be bigger than the tiny Matadi.

Matadi port can't handle big ships. and Container Parking yard is very small.

At least there might be a port that can handle big ships.

1 port, plus the 2 small ones. Not to bad.

But with a coast of 37 km. Should be able to expand. They might even built bigger to due facts that the Mining industry is back big time and most likely to surpass in past productions.
 

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Discussion Starter · #11 ·
Hmmm, they are upgrading Ghanas port in Tema and thats costing $500 million, so building one from new for $500 million is amazing.
The original quotes if I remember correctly was in the $300 million region but there has been issues with financing. Up until this report was released, I did not know how it was going to be financed but now I have an idea. I guess DRC is still seen as high risk even at high levels.

this is the thread that was created by Butembo some time after this project was originally approved here
 

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Discussion Starter · #13 ·
They need to start this thing as soon as possible. at earliest next January or late March.
According to Pius, the construction will start in January, in fact let me just paste his quote

According to some sources close to the project I contacted in Moanda, the construction will start next January. They have already started paving the road to Banana and heavy equipment from South Korea is arriving in Matadi.
 

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Discussion Starter · #14 ·
Its was quoted as $3 billion.
I always remembered the $300-400 million figure from when Kabange went to Korea either earlier this year or sometime last year. Either way, this is a vital project that needs to get done ASAP. We have lost 50 years of steady development (along with most of africa) so they need to be more ruthless with the projects and go on ahead.
 

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Mutu ya Chuma.
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I always remembered the $300-400 million figure from when Kabange went to Korea either earlier this year or sometime last year. Either way, this is a vital project that needs to get done ASAP. We have lost 50 years of steady development (along with most of africa) so they need to be more ruthless with the projects and go on ahead.
Oh, the one i remember was from last year, they quoted Germans before South-Koreans. I will try to find the Link.


But yes, this is very vital for the future. we embarrassingly behind:bash::bash::bash:
 

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Discussion Starter · #16 ·

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Oh, the one i remember was from last year, they quoted Germans before South-Koreans. I will try to find the Link.


But yes, this is very vital for the future. we embarrassingly behind:bash::bash::bash:
Is there any image or anything that we can see on how the project will be carried out?
Or how it will look when done?


Its sad on the way we are heading.....
There seem to be investors that are more than hungry to invest in our country but with this snake in power we will not see any big movement.
 

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Discussion Starter · #18 ·
But yes, this is very vital for the future. we embarrassingly behind:bash::bash::bash:
How we fell behind so far is amazing because despite having maybe 10-20 people educated to university standard at the time of independence, we don fine in the 70s. Even in the early 80s which I can't recall but people tell me everyone was doing well during that time and you can tell by the amount of people that stayed in the country.

What is even more amazing to me is that the current and previous governments have identified some very good projects that can transform the country but we are still in a rut.

Projects such as:

1. Inga dams 1 + 2 rehabilitation (being it or not the damn world bank )
2. Inga dam 3 construction
3. Zongo dam
4. Rehabilitation of railways around the country
5. Banana Port
etc
 

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Good for Congo to diversificate his partenership and to doesn't be dependant of China.
 

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Mutu ya Chuma.
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How we fell behind so far is amazing because despite having maybe 10-20 people educated to university standard at the time of independence, we don fine in the 70s. Even in the early 80s which I can't recall but people tell me everyone was doing well during that time and you can tell by the amount of people that stayed in the country.
When my grandpa tells me about how Goma, Bukavu, Kisangani were, i can't believe what he is saying. its like a fairytale.

The rise and the fall, is just too good to believe. (don't want to talk about it anymore, just get pissed off).

What is even more amazing to me is that the current and previous governments have identified some very good projects that can transform the country but we are still in a rut.
Projects such as:

1. Inga dams 1 + 2 rehabilitation (being it or not the damn world bank )
2. Inga dam 3 construction
3. Zongo dam
4. Rehabilitation of railways around the country
5. Banana Port
etc
You forgot Ruzizi 1, 2 ( the dams that powers Goma and Bukavu) they could be expanded to Ruzizi 3 and 4. powering the whole North and South Kivu.

The Dam in Kalemie needs to come back to life as well. The one in Kisangani (Tshopo) also needs expansion and rehabilitation to produce more. Not to mention the small one in Bunia and Mbuji-Mayi. Zongo Dam 2 was estimated at $230 million by Chinese .These are small Dams that all together wont exceed $1 bln. But their pockets are important than the millions in darkness.

If Inga 3 is built at it estimated (4,300 MW). that will be massive. Lots of manufacturing will flood the country.

Talking about the rail. The existing 3,700 km can be rehabilitated at $1 bln (according to some articles i read last year). Then they will need to Connect Kin-Ilebo (1 000 km) and Kisangani-Kindu (700 km), and Bukavu-Kindu (500 km).

Done, the whole country is interconneted and the economy will be back with revenge.

But with this government. Only wishful thinking is great.
 
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