Mining giant Eurasian Natural Resources Group (ENRC) has been granted a new mining licence by the government of the Democratic Republic of the Congo (DRC), a 'significant transaction' which is expected to add 'considerable value' to its operations in the country.
The Frontier licence, granted to ENRC's subsidiary Frontier Sprl, is worth $101.5m and will be formally issued in the coming weeks. It will provide feed for the Frontier processing plant that was acquired as part of the settlement with First Quantum Minerals (FQM) in March.
"This is a significant transaction for ENRC, consolidating its position in the DRC and enabling it to commence operations at the Frontier processing plant. The addition of approximately 90 thousand tonnes per annum of copper production from Frontier is expected to add considerable value to ENRC's operations and expedite its plans to become a significant global copper producer," ENRC said.
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In addition to the licence area previously held by FQM at Frontier, the new licence will include adjacent areas, better conforming to the extent of the ore body. On December 31st 2009, FQM disclosed a total resource of 264m tonnes at a grade of 1.17% copper for the Frontier licence.
"I am delighted that the DRC Government has decided to grant this licence to ENRC, thereby enabling us to progress operations on the site and, importantly, bringing employment and investment to the region," said ENRC's Chief Executive Officer Felix Vulis.
ENRC is now reviewing its copper and cobalt development priorities given the additional capital expenditure now required to recommission Frontier, as well as required to complete the Kolwezie processing facility.
BC
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