Frontier mine, Katanga explained

Frontier Mine
Pushpin Map:Democratic Republic of the Congo
Pushpin Label Position:top
Coordinates:-12.7428°N 28.49°W
Subdivision Type:Province
State/Province:Haut-Katanga Province
Country:Democratic Republic of the Congo
Owner:Eurasian Resources Group
Products:Copper

Frontier Mine is a copper mine in Katanga Province, Democratic Republic of the Congo (DRC) owned and operated by ERG (Eurasian Resources Group). The resource was first mined by First Quantum Minerals. The mine has an annual capacity of 370,000 tonnes of sulfide concentrate containing 27% copper.[1]

Location

The mine is located 2km (01miles) from the Zambian border, near the town of Sakania.The main railway from the Zambian Copperbelt to Lubumbashi in the DRC runs within 5km (03miles) of the site.The area was explored in the 1930s, and Union Minière found copper in 1932. The area was further explored in the 1970s. Companies who have explored the region include Anglo-American and a joint venture between Sodimico and a Japanese group.

Development

First Quantum obtained exploration licenses in January 2001 and July 2002. Production began in 2007, and in 2010 the mine yielded 322,700 tonnes of copper.In August 2010 the DRC government seized Frontier, the largest copper mine in the country, saying First Quantum had been "unreasonable" in refusing to renegotiate the terms of the contract.[2] The government-owned company Sodimico was granted the titles to First Quantum's Frontier and Lonshi mines.[3] In August 2011, Bloomberg News reported that Sodimico had sold its share in the two copper projects for $30 million. This was less than a sixteenth of the estimated value of the stake. The purchaser was not named.[4] In response to this report, the minister of mines, Martin Kabwelulu, denied that any sale had taken place.[5] However, Reuters soon confirmed the sale of 30% of Frontier to Fortune Ahead, which already owned the other 70% of the mine through its stake in the joint venture Sodifor.[6] The Sodifor joint venture also owned the Lonshi Mine. Proceeds from the sale appeared to be spent on funding Joseph Kabila's political campaign in the 2011 Democratic Republic of the Congo general election.

Re-Development and ENRC licence

In July 2012, ERG, known as Eurasian Natural Resources Corp Plc at the time was granted the mining licence at Frontier. Eurasian Natural Resources Corporation had previously acquired First Quantum's plant and equipment remaining at the site as part of a settlement for First Quantum DRC assets. Eurasian Natural Resources Corporation announced plans to recommence production as soon as possible.[7]

In 2016, ENRC, (which was reorganized as Eurasian Resources Group) sold rights to 100% of the mine's copper to the CCS company in Zambia, which is owned by China Nonferrous Metal Mining Group's Foreign Engineering and Construction Co., Ltd. (NFC) and Yunnan Copper.[8] In 2018, the ERG was attempting to sell the mine to reduce its debt burden.[9] As of 2021, the company still runs the mine and signed a community development plan.[10]

Notes and References

  1. Web site: ERG Frontier Mine . ERG .
  2. Web site: Mining companies clash over Congo copper mine . Tim Webb . The Guardian . 6 September 2010 . 2011-11-04.
  3. Web site: DRC withdraws permit for First Quantum's Frontier mine . Mining Weekly . Chanel de Bruyn . 30 August 2010 . 2011-11-04.
  4. Web site: Congolese State Miner Sodimico Sells a Stake in Former First Quantum Mines . Bloomberg . Michael J. Kavanagh and Franz Wild . Aug 17, 2011 . 2011-11-04.
  5. Web site: Hogg . Jonny . Congo minister denies reports of mine stake sale . Reuters . 2011-08-17 . 2022-08-15.
  6. Web site: Hogg . Jonny . UPDATE 1-Congo sells mining assets to fund polls -MPs, docs . Reuters . 2011-08-18 . 2022-08-15.
  7. Web site: Eurasian Natural Resources Corp Plc Acquisition of Frontier Licence . FOX Business . Jul 31, 2012 . 2012-11-08 .
  8. Web site: Cornish . Laura . China to acquire ERG's Frontier mine copper concentrate . Miningreview.com . 2016-06-22 . 2022-08-06.
  9. Web site: Denina . Clara . Afanasieva . Dasha . Kazakh miner ERG revives sale of Congo copper mine -sources . Reuters . 2018-03-07 . 2022-08-02.
  10. Web site: Liedtke . Simone . ERG Africa inks agreement that benefits six DRC communities . Mining Weekly . 2021-10-06 . 2022-08-02.