December 03, 2008

Kivu Resources drops Congo mine plan

Bloomberg reported that Kivu Resources has abandoned plans to develop industrial scale mining of the Bisiye deposit in North Kivu. Bisiye has been the main location of artisanal mining in the Democratic Republic of Congo in recent years, but continuing instability in the area has prevented planned investment.

Mr Brian Christophers GM of Goma said that Kivu Resources' board blocked plans to spend USD 28 million developing Bisiye. Soldiers from the Congolese national army's semi integrated 85th brigade have occupied the mine since December 2004. He added 'We can not work there. The soldiers threaten us and throw us off the property. The government promises to sort it out and we go back, but the same thing happens."

In February 2008, Congo’s mines minister banned artisanal mining in the area, but the ruling was overturned by the local government. Kivu Resources now intends to focus its attention in the DRC on the more stable Katanga province, where it is exploring a 3,000 square kilometers concession near Manono.

Kivu Resources is a private international mining group mainly owned by Jonah Capital, Coronation Capital and Metmar.