Inflation Hinders Growth in Democratic Republic of Congo's Mining Boom

JOHANNESBURG--June 26, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--The renegotiation of mining contracts in the Democratic Republic of Congo is scheduled to start in mid-July, according to government statements. This should clear the uncertainty, which has dogged mining start-ups and deals since the government launched a review of 61 contracts. A group of senior government ministers have formed a task force to review mines. The group will look at contracts signed during the country's civil war, which ended in 2003, and other contracts that have roots going further back. Chinese investment is one of the major factors driving the mining boom and the sale of mining rights. In April, details of a $2.9 billion investment by China Railway Group Limited (HKG:0390) (Beijing) into copper and cobalt mining saw financing and loans of $1.83 billion, including interest-free loans of $550 million.