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Central Afr. Min&Exp (CFM)

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Wednesday 05 September, 2007

Central Afr. Min&Exp

CAMEC Withdraws Offer

Central African Mining&Exploration
05 September 2007


Wednesday 5th September 2007


                Central African Mining & Exploration Company Plc
                           ('CAMEC' or 'the Company')


                       Camec Withdraws Offer for Katanga


CAMEC, the fully integrated exploration, mining and production company,
announces that it has decided to withdraw its Offer for Katanga Mining Limited
("Katanga").

The Company has been obliged to take this decision because of uncertainty
relating to the mining licence regime in the Democratic Republic of the Congo
(the "DRC").  CAMEC has been aware that the government of the DRC is reviewing
certain mining leases, including those held by CAMEC and Katanga.  Last week,
the Company was informed that the  Attorney General of the DRC, independent of
this review, was taking steps to revoke CAMEC's licence on C19 and Mukondo, very
significant assets for CAMEC.  CAMEC believes there is no legal valid basis for
any revocation, and that the announcement of this potential action was clearly
timed to impact CAMEC's Offer for Katanga. Furthermore, CAMEC believes that this
action is motivated by commercial forces in the DRC who oppose CAMEC's
acquisition of Katanga.

CAMEC is confident that it will successfully refute any allegations or attempts
made against its licences which were originally granted in 2004, under the new
2002 mining code, in settlement of international arbitration against the DRC
government.  The Company has already appealed to the Minister of Mines against
any potential revocation. Should this appeal prove unsuccessful, CAMEC will
initiate international arbitration proceedings against the government of the DRC
(including its various agencies and all individuals personally involved) to
recover any loss which it may suffer as a result of these actions (including but
not limited to any reduction in the value of the Company and all costs incurred
by the Company in connection with its offer to acquire Katanga).  In addition,
CAMEC will take action against all agencies and individuals responsible for
unlawful interference with CAMEC's economic interests.

The Company has been advised that it is entitled to continue working on the
concession until the determination of the issue by a court.

In light of these developments in the DRC, CAMEC is concerned about the impact
of the review by the Government of the DRC on Katanga's licences.  Katanga has
refused to share information with CAMEC for due diligence purposes and as a
result CAMEC is unable to verify the status of such review.


Andrew Groves, Chief Executive of CAMEC, said:

"We have decided to withdraw our Offer for Katanga following consultation with
George Forrest and our other partners. We are confident that we will be able to
reconfirm our rightful ownership of our mining permits in the DRC.  If
necessary, we will commence international arbitration proceedings, which we
believe will be successful as were the previous arbitration proceedings in 
2004."


For further information please visit www.camec-plc.com or contact:

Phil Edmonds / Andrew Groves        CAMEC                     Tel: 0845 108 6060
Jonathan Wright                     Seymour Pierce            Tel: 020 7107 8000
Ben Brewerton / Jon Simmons         Financial Dynamics        Tel: 020 7269 7279

Ed Flood                            Haywood                   Tel: 020 7031 8000


Notes to Editors:

CAMEC has invested more than US$150 million in the DRC, including the
construction of a copper and cobalt SX/EW facility at Luita in the state of
Katanga.  CAMEC anticipates that by the end of March 2008, Luita will have the
capacity to produce 40,000 tonnes annually of copper cathode and 6,000 tonnes
annually of cobalt cathode.  The plant has a targeted annual template capacity
of 100,000 tonnes of copper cathode and 12,000 tonnes of cobalt cathode by the
end of 2008.   These anticipated production targets could be materially
adversely affected by the actions of certain individuals in the DRC and
particularly if CAMEC's licence on C19 in the DRC is revoked.

In addition to its operations in the DRC, CAMEC has a number of other African
projects, including:

•    In Mozambique, CAMEC is the largest holder of coal licences in the
     prospective Zambezi and Moatise Basin and also operates one of the 
     country's largest grain trading and milling operations ;

•    In South Africa, CAMEC owns 51% of a company that controls significant
     fluorspar deposits. The Company also has substantial coal interests in the 
     form of prospecting licences over 15 farms totalling over 20,000 hectares. 
     Historic drilling on these licences shows promising results. Additionally 
     it has a 20.9% interest in a platinum project, in which Impala has the 
     majority share, on the western limb of the bushveld complex;

•    In Mali, CAMEC has a Joint Venture Agreement for the exploration and
     development of licence areas covering a total of 4,000 km2. These, situated 
     on the border of Guinea, are believed to have the potential to house 
     significant bauxite deposits such as those in production across the border;
          
•    CAMEC also controls one of Africa's largest trucking and logistics
     operations..





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