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The Mineral Industry of Congo (Brazzaville) in 2012

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The Mineral Industry of Congo (Brazzaville) in 2012 2012 Minerals Yearbook CONGO (BRAZZAVILLE) U.S. Department of the Interior May 2015 U.S. Geological Survey THE MINERAL INDUSTRY OF CONGO (BRAZZAVILLE) By Philip M. Mobbs The economy of the Republic of the Congo, also known as of the Extractive Industries Transparency Initiative (Extractive Congo (Brazzaville), was based primarily on the production of Industries Transparency Initiative, 2012, p. 3). crude oil, which was estimated to account for about 65% of the nominal gross domestic product in 2012. Many of the oilfields Commodity Review were mature, but decreased production from the older fields was Metals expected to be offset in the short term by new offshore fields. International interest in the development of the nonfuel mineral Chromium, Copper, Gold, Lead, and Zinc.—Luyuan des resources of Congo (Brazzaville) has increased in recent years, Mines Congo evaluated the Moukassi prospect for chromite and much of the focus of multinational mining companies occurrences. The joint venture of MMG Exploration Holdings was on the country’s gold, iron ore, and potash resources Ltd. and Sanu Resources Ltd. explored the Kingouala and (International Monetary Fund, 2013, p. 19). the Reneville license areas for base-metal deposits. Bikonga Production S.A. worked on the Kari-Zoungou copper prospect and Cotrans Construction Services worked on the Ngouaka copper Most of Congo (Brazzaville)’s hydrocarbons were produced prospect. Société de Recherche et d’Exploitation Minière from offshore fields, but much of the produced natural gas (SOREMI), which was a subsidiary of Gerald Metals, Inc. of was flared because of the lack of gas-gathering infrastructure. the United States (90% equity interest) and the Government Congo (Brazzaville) ranked sixth in terms of the volume of (10%), worked on the Grande copper mine at Boko Songo crude oil production among African crude oil producers in and continued with the development of the Yanga Koubanza 2012. Production statistics obtained from the Kimberley Process lead-zinc project. SOREMI also was evaluating the Mbena, the Certification Scheme (KPCS) indicated that diamond output Mvoungouti, and the Poungou gold permit areas. decreased by about 33% in 2012 compared with that of 2011. Numerous companies were evaluating their exploration Owing to domestic demand, cement output was estimated permit areas for the occurrence of gold, including Congolaise to have increased by more than 100% (table 1; BP p.l.c., des Mines S.A.R.L.U. on the Omboye-Frontiere permit; 2013, p. 10; Kimberley Process Certification Scheme, 2013). Alector Congo on the Kiba and the Kouyi prospects; Allante Resources Gabon S.A.R.L. of Gabon on the d’Izendi prospect; Structure of the Mineral Industry China Geo-Engineering Corporation International Ltd. on the Tcherre prospect; Congo Gold S.A. on the Kakamoeka, the The mineral sector is under the jurisdiction of the Ministère Kakamoeka-Poumbou, and the Sounda-Banga permits; Congo des Mines et de la Géologie. Mining is regulated by the Code Mining Ltd. on the Badondo prospect; and Congo Yuan Wang Minier (law No. 4–2005), which requires that a Congolese-based Investment Ltd. of China on the Elen I and the Mayembe company operate exploitation licenses. Article 100 of the Code prospects. Also exploring for gold were Macpela Mining, entitles the Government to a free (carried) equity interest of not which was a subsidiary of Groupe Macpela Canada Inc. of less than 10% in mining operations. Decree No. 2007–274 sets Canada, on the Lelali-Louasa and the Lelali-Foila permits; the conditions for prospecting, exploration, and exploitation of Managem S.A. of Morocco on the Les Saras prospect; Million minerals, and Decree No. 2007–293 addresses quarrying issues. Well Holdings Ltd. of China on the Ndoumba permit and the The Ministère des Hydrocarbures oversees activity in the Ndoumba alluvial permit; and Newco Mining on the Mayeye hydrocarbon sector. The sector is regulated by the Code des prospect. Société LULU continued work on the Mindouli and Hydrocarbures (law No. 24–1994). Procedures for awarding oil the Mpassa-Moubiri base-metal prospects; Société PROFAC and gas exploitation licenses are set out in Decree No. 2008–15. evaluated the Garabizam prospect; Société SICO worked on the State-owned Société Nationale des Pétroles du Congo (SNPC) Sembe-Loupo prospect; and Société Soneco S.A. examined the manages the Government’s interest in petroleum production and Ngonaka prospect. refining and natural gas production and processing. International Iron Ore.—Iron ore exploration took place primarily in the oil companies operate many of the oilfields (table 2). Invindo Massif area, which is located in the Cuvette-Ouest and Small-scale artisanal miners dominated the diamond and the Sangha Departments in northwestern Congo (Brazzaville), gold mining sectors. Small-scale domestic operations quarried and in the Massif du Chaillu area, which is located in the construction materials, such as gravel, sand, and stone, Lekoumou and the Niari Departments in southwestern although in 2011 and 2012, international construction companies Congo (Brazzaville). obtained a number of quarrying permits for sand and stone to Core Mining Congo S.A.R.L., which was a subsidiary of support infrastructure construction projects. International mining Core Mining Ltd. of the United Kingdom, continued to evaluate companies’ activities consisted primarily of exploration for base the Avima project in Sangha Department. In 2012, Core Mining and precious metals and industrial minerals. Congo (Brazzaville) announced an updated mineral resource estimate of 690 million was a participant in the KPCS and remained a candidate country metric tons (Mt) at a grade of 58% iron (Core Mining Ltd., 2012). CONGO (BRAZZAVILLE)—2012 10.1 Exxaro Resources Ltd. of South Africa acquired African Iron which recommended that the Zanaga project be developed as Ltd. of Australia, which, through a subsidiary, held 92% equity a 30-million-metric-ton-per-year (Mt/yr)-capacity project. Iron interest in DMC Iron Congo S.A.R.L. DMC Iron Congo held the ore pellets (68% iron) were to be shipped by a 380-km slurry Lekoumou permit, and was also continuing with its exploration pipeline from the mine to a new port near Pointe-Noire. An of the Mayoko and the Ngoubou-Ngoubou iron ore projects, environmental impact assessment of the Zanaga project was which are located in Niari Department. expected to be completed in 2013, and a bankable feasibility Equatorial Resources Ltd. of Australia completed a study was expected to be completed in 2014 (Zanaga Iron Ore diamond and reverse-circulation drill program on the Company Ltd., 2013, p. 8–10). Mayoko-Moussondji project in southwestern Congo Other companies holding iron ore exploration permits were (Brazzaville), prepared a resource estimate, and worked with African Mining Development on the Mont Keka permit; other iron ore companies and the Government on plans for Equamineral S.A., which was a subsidiary of Equamineral transportation of iron ore by rail to port facilities at Pointe Holdings Ltd. of Australia, on the Oyabi permit; and Noire. Equatorial Resources also signed a memorandum of FERCO S.A, on the Ambambaya, the Leke, the Lokoui, understanding with Core Mining and Sundance Resources and the Omboye-Akana prospects. Golden Lion S.A.R.L. Ltd. of Australia concerning cooperation on the development held the Avima-Est prospect, and Société Soneco held the of rail transportation infrastructure in the north. The new line Mitele prospect. would link Core Mining’s Avima project, Equatorial’s Badondo Manganese, Niobium, Tantalum, and Tin.—Société project, and Sundance’s Mbalam and Nabeba projects to a Africaine pour le Developpement Minier S.A.R.L., which was a proposed iron ore export terminal at Lolabe, which was to be subsidiary of Sandstone Worldwide Holdings of The Bahamas, located about 30 kilometers (km) south of Kribi, Cameroon. evaluated the Matsanga Marala prospect and REFAEL Mining In 2012, Equatorial completed 1,092 meters (m) of an ongoing evaluated the Loue prospect for the occurrence of niobium diamond drill program on the Balondo prospect in Sangha and tantalum. Société de Recherche et d’Exploitation Miniere Department. Congo Mining Ltd., which was Equatorial’s S.A. worked on the Kimongo manganese permit and REFAEL subsidiary, held two iron-ore prospecting permits adjacent to the Mining evaluated the Mbinda manganese prospect. Baraca Mayoko-Moussondji project—the Moussondji (which is located Mining Congo S.A. worked on the Magne Scrina tin prospect. to the west) and the Oubouesse (which is located to the south) (Equatorial Resources Ltd., 2013, p. 1–8). Industrial Minerals Sundance’s subsidiaries Cam Iron S.A. and Congo Iron S.A. continued work on the Mbalam project in Cameroon and the Cement.—Société Nouvelle des Ciments du Congo Nabeba prospect in Sangha Department, Congo (Brazzaville), (SONOCC) continued work on the proposed capacity expansion respectively. Nabeba was expected to be developed as part of the of the Loutete plant to 300,000 metric tons per year (t/yr) from Mbalam project. In 2012, Congo Iron completed a drill program about 210,000 t/yr. Dangote Group of Nigeria worked on a on the Nabela prospect and Sundance released an updated proposed 1-Mt/yr-capacity cement plant at Madingou, which mineral resource estimate of 1.4 billion metric tons (Gt) with a is located about 190 km east of Brazzaville. Diamond Cement grade of 35.1% iron, which included 472 Mt of high-grade ore Congo S.A., which is a subsidiary of West African Cement S.A. with a grade of 57.9% iron. Congo Iron also held the Ibanga and of Ghana, proposed to build a 600,000-t/yr-capacity cement the Nabemba-Bamegod iron ore permits. Negotiations continued plant at Mindouli, which is located about 100 km east of with Hanlong Mining Investment Ltd. of China and Government Brazzaville (Dangote Cement PLC, 2012; Service Économique authorities about Hanlong’s proposed acquisition of Sundance de Brazzaville, 2012a, b).
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