In what the owner hopes will be the first integrated tin mining and smelting operation in the Democratic Republic of Congo (DRC), Victor Kasongo, the ex-Congolese mine regulator and deputy minister has received financial backing to mechanise the tin mining operations of his company, Congo Premier Sarl, to provide consistent ore supply to his revived furnaces, in an operation with targeted annual production of 2,300 tonnes of tin.
The US$20 million loan, offered to Congo Premier Sarl by South Africa’s Nedbank Ltd., First Bank of Nigeria Ltd. and Gabon’s Groupe BGFI Bank, is conditional on the acquisition of an offtake agreement. Negotiations are planned with Malaysia Smelting Corp. (MSC) for sale of the tin produced and with a major producer of tantalum to sell the tin mining by-product.
As a local mine owner competing for investment with established multinational mining companies, Kasongo is an exception. He says, “Without a track record it’s almost impossible to do business.” DRC was ranked 184 out of 189 economies in the World Banks 2015 Ease of Doing Business index; Kasongo bemoans perceived government bureaucracy for slowing down license applications for operating mines, importing equipment and exporting metal. However, the World Bank does put DRC in the top ten of countries who have improved accessibility to businesses.
An additional hurdle is the five days for product to be trucked from the plant in Kisangani to the Kenyan port of Mombasa due to poor logistical infrastructure. In order to confirm the company’s operations as conflict-free, Congo Premier is also seeking membership of ITRI’s iTSCi scheme.
Whilst, according to the Chamber of Mines, mining of cassiterite ore rose 42 percent to 10,756 tons last year (equivalent to some 6,500 tonnes of tin), it is unclear what proportion of this came from Congo Premier Sarl’s existing tin operations. It is therefore unknown what net impact the proposal may have if it is successful.
