DRC minister says Brinkley Uranium deal not valid

DRC minister says Brinkley Uranium deal not valid
By: Reuters
Published: 17 Sep 07 - 17:28

Congo's deputy mines minister said on Monday a uranium prospecting deal between UK-based Brinkley Mining and Congo's nuclear agency had "no value or validity", but both parties to the deal insisted it stood.

In July, Brinkley announced the signing of a memorandum of understanding with Democratic Republic of Congo to create a joint venture with the vast central African nation's atomic energy agency to explore for, mine, and export uranium.

But Britain's Sunday Times newspaper reported the deal could be under threat from a review by Congo of mining practices because of the pivotal role played in setting up the accord by a convicted fraudster who has fallen foul of the government.

"There is no ministerial approval of this deal. So it has no value or validity for the government," Congo's Deputy Mines Minister Victor Kasongo told Reuters.

Reacting to the Sunday Times report, Brinkley issued a statement via the London Stock Exchange on Monday saying its board was confident the agreements were "legally binding and will deliver value for shareholders".

Brinkley Africa Ltd, a subsidiary of Brinkley Mining, signed the deal with the blessing of Sylvanus Bonane, then minister of scientific reasearch -- a post which has authority over the country's General Commission for Atomic Energy.

Kasongo said Bonane, who was fired from the government just days after the deal was announced, had no authority to approve it.

"This was a commercial company that hid behind a research company to negotiate a commercial deal. It doesn't exist for us," Kasongo said.

A new minister of scientific research has not yet been named.

However, Francois Lubala Toto, the head of Congo's nuclear energy agency, the CGEA, told Reuters there was nothing wrong with the deal and that it was awaiting signature by President Joseph Kabila.

"Everything involving the negotiation of exploration, exploitation, and treatment of uranium falls under the responsibility of the agency," Toto said.

"It's not until we make a request for a mining permit that the ministry of mines is implicated."

By 1250 GMT, Brinkley shares were down 4 pence, or 23.88 percent, at 12.75 pence, after falling as low as 12 pence in earlier trade.


Source: http://www.miningweekly.co.za/article.php?a_id=117004