2011 Minerals Yearbook CONGO (BRAZZAVILLE) U.S. Department of the Interior September 2013 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 refining and natural gas production and processing. International Congo (Brazzaville), was based primarily on the production oil companies operate many of the oilfields (table 2). of crude oil, which was estimated to account for 69% of the nominal gross domestic product in 2011. Petroleum was Commodity Review estimated to account for 79% of total Government revenues, but Metals many of the oilfields were mature. In the short term, decreased production from the older fields was expected to be offset by Copper, Gold, Lead, and Zinc.—SOREMI, which was a new offshore fields. International interest in the development of subsidiary of Gerald Metals, Inc. of the United States (90% the solid mineral resources of Congo (Brazzaville) has increased equity interest) and the Government (10%), operated the Grande in recent years, with much of the focus on the country’s iron ore Mines at Boko Songo and continued with the development of and potash resources (International Monetary Fund, 2012). the Yanga Koubanza lead-zinc project. La Société LULU, which Production was a subsidiary of a Chinese company, received operating permits to reopen base-metal mines on the Mindouli Mpassa Most of Congo (Brazzaville)’s hydrocarbons were produced prospect. from offshore fields, but much of the produced natural gas In September, Africa Holdings Ltd. of the United Kingdom was flared because of the lack of gas-gathering infrastructure. acquired the Congo (Brazzaville) subsidiary of NGEx Resources Congo (Brazzaville) ranked seventh in terms of the volume Inc. of Canada, which was exploring for copper, lead, and among African crude oil producers in 2011 (BP p.l.c., 2012, p. 10). zinc. Congo Gold S.A. was exploring its gold permit, which Production statistics obtained from the Kimberley Process included the Kakamoeka Poumbou prospect. Exploration of Certification Scheme (KPCS) indicated that diamond output the Malambani gold concession was resumed in March by decreased by 80% in 2011 compared with that of 2010. Cement Zamarat Mining Ltd. of the United Kingdom, which was then output also was estimated to have decreased (table 1; Kimberley in the process of acquiring a 34% equity interest in Compagnie Process Certification Scheme, 2012). Minière du Chaillu from Mexivada Mining Corp. of Canada. Zamarat, however, ceased activity in mid-2011, and its option Structure of the Mineral Industry to acquire up to 70% interest in Mexivada’s exploration and prospecting permits for gold and associated minerals (such as The mineral sector is under the jurisdiction of the Ministère diamond) lapsed at yearend. The Government did not renew des Mines et de la Géologie. Mining is regulated by the Code Compagnie Minière du Chaillu’s permits owing to the lack of Minier (law No. 4–2005), which requires that a Congolese-based activity on the properties (Mexivada Mining Corp., 2012, p. 10). company operate exploitation licenses. Article 100 of the Code Iron Ore.—Iron ore exploration took place primarily in the entitles the Government to a free (carried) equity interest of not Invindo Massif area, which is located in Cuvette-Ouest and less than 10% in mining operations. Decree No. 2007–274 sets Sangha Departments in northwestern Congo (Brazzaville), and the conditions for prospecting, exploration, and exploitation of in the Massif du Chaillu area, which is located in Lekoumou minerals, and Decree No. 2007–293 addresses quarrying issues. and Niari Department in southwestern Congo (Brazzaville). In In recent years, small-scale artisanal miners dominated January, Sterling Minerals Ltd. of Australia changed its name to the diamond and gold mining sector, and small-scale African Iron Ltd. after acquiring DMC Mining Ltd. from Cape domestic operations quarried construction materials, such as Lambert Resources Ltd. of Australia. DMC Mining held 80% gravel, sand, and stone. Aside from Société de Recherche et equity interest in DMC Iron Congo S.A.R.L., which continued d’Exploitation Minière S.A. (SOREMI)’s Grande copper mine, its exploration of the Mayoko iron ore project, which is located international mining companies’ activities consisted primarily of in Niari Department. DMC Mining subsequently increased its exploration of occurrences of gold, iron ore, and potash. Congo interest in DMC Iron Congo S.A.R.L. to 92% and also acquired (Brazzaville) was a participant in the KPCS and remained a 85% interest in the Ngoubou-Ngoubou project, which is located candidate country of the Extractive Industries Transparency adjacent to the Mayoko project. In October, African Iron Initiative (Secrétariat pour l’Évaluation Environnementale reported an updated mineral resource estimate for the Mount en Afrique Centrale, 2010, Annex 17; Extractive Industries Lekoumou prospect of the Mayoko project of 77.3 million Transparency Initiative, undated). metric tons (Mt) of an itabirite ore grading 40.6% iron, 33.9% The Ministère des Hydrocarbures oversees activity in the silica dioxide, 3.4% aluminum oxide, and 0.07% phosphorus; hydrocarbon sector. The sector is regulated by the Code des and 43.5 Mt of a hematite ore grading of 54.9% iron, 11.8% Hydrocarbures (law No. 24–1994). Procedures for awarding oil silica dioxide, 4% aluminum oxide, and 0.1% phosphorus. The and gas exploitation licenses are set out in Decree No. 2008–15. hematite was expected to be developed as a direct-shipping State-owned Société Nationale des Pétroles du Congo (SNPC) ore. The itabirite (which was in a metamorphosed banded iron manages the Government’s interest in petroleum production and formation that contained hematite, magnetite, and martite) was CONGO (BRAZZAville)—2011 10.1 expected to be beneficiated (crushed and screened) prior to permit, which is located in Gabon directly west of the Youkou shipping. The project was expected to transport the beneficiated project. product and the ore by rail; a freight railway was located about In 2011, Xstrata plc of Switzerland exercised its option 2 kilometers (km) northwest of the Mount Lekoumou prospect. to acquire 50% plus 1 share equity interest and assumed African Iron planned to develop an initial 5-million-metric- management of the Zanaga iron ore project, which is located ton-per-year (Mt/yr)-capacity direct-shipping ore operation by about 300 km northeast of Pointe Noire in Lekoumou mid-2013. In January 2012, however, Exxaro Resources Ltd. of Department; Zanaga Iron Ore Company Ltd. of the South Africa announced its intention to take over African Iron United Kingdom (ZIOC) retained 50% less 1 share equity and the Mayoko and the Ngoubou-Ngoubou projects (African interest in the project. In 2011, 48,292 m of reverse-circulation Iron Ltd., 2011a, p. 1–3; 2011b, p. 2–3, 9). drilling and 46,822 m of diamond drilling was completed, and In 2011, Core Mining Congo S.A.R.L., which was a ZIOC reported an update of the project’s mineral resources to subsidiary of Core Mining Ltd. of the United Kingdom, 4,338 Mt of ore with an average grade of 33% iron, 44.3% silica continued to drill the Avima project in Sangha Department. The dioxide, 3.3% aluminum oxide, 0.114% manganese, and 0.049% company reported an initial inferred mineral resource estimate phosphorus. Xstrata was studying two development options, for the Avima project of 557 Mt of an itabirite-rich ore grading which included a 45-Mt/yr-capacity option to transport iron ore 40.3% iron, 29.6% silica dioxide, 7.61% aluminum oxide, and fines and magnetite concentrate by rail and a 30-Mt/yr option to 0.08% phosphorus; and 455 Mt of a hematite-rich ore grading ship iron ore pellets by a slurry pipeline. A bankable feasibility 56.1% iron, 10.1% silica dioxide, about 5.7% aluminum oxide, study was planned to be completed in 2014, when Xstrata could and 0.08% phosphorus. In 2012, Core Mining expected to exercise an option to acquire 100% equity interest in the project. continue drilling and to complete a prefeasibility study. Subject Initial production was expected to begin in late 2016 (Zanaga to a positive bankable feasibility study, the availability of Iron Ore Company Ltd., 2012a, p. 5, inside back cover; 2012b, funding, and Government approval, Core Mining projected that p. 5, 7). initial iron ore production would begin in 2016 (Core Mining Ltd., 2011; undated). Industrial Minerals In April, Equatorial Resources Ltd. initiated a 33,000-meter (m) diamond and reverse-circulation drill program on Phosphate Rock.—In 2011, Cominco Resources S.A., the Mayoko-Moussondji project in southwestern Congo which was a subsidiary of Cominco Resources Ltd. of the (Brazzaville) that was expected to be completed in 2012. United Kingdom (formerly African Investments Group Congo), Equatorial also acquired two iron ore prospecting permits completed a 19,866-m reverse-circulation drill program and a adjacent to the Mayoko-Moussondji project—the Moussondji 1,028-m diamond-bit (core) drill program on the Hinda project, (which was located to the west) and the Oubouesse (which which includes the Hinda and the Kolatchikanou phosphate and was located to the south). Equatorial planned to begin a drill uranium permits. The Hinda phosphate permit, which is located program on its Balondo prospect in Sangha Department in 2012 east of the area covered by the Mengo exploration permit, was (Equatorial Resources Ltd., 2012, p. 3, 8). issued in February, and the Kolatchikanou phosphate permit, Sundance Resources Ltd. of Australia continued work on which is located east of the area covered by the Sintoukola the Mbalam project, which included the Mbarga, the Mbarga exploration permits, was issued later in 2011 (Cominco South, and the Metzimevin deposits in Cameroon, and the Resources Ltd., 2012, p.