Kamoto Copper Company (KCC), has entered into an agreement with Gecamines, it’s 25pc joint venture partner to acquire a comprehensive land parcel adjacent to KCC’s existing mining concessions. The land includes multiple blocks for construction of long-term trailing facility and other key infrastructure requirements.
KCC, which is a 75pc subsidiary of Katanga Mining Ltd, plans to mitigate its concerns about land constraints for operations with this land, which is expected to cost the copper miner $250mn. Under the agreement, the copper miner will make an initial payment of $150mn to Gecamines, offsetting against the land purchase price and other payment obligations.
Furthermore, KCC will have to remove tailings from any sub-section of this area to another proximate location and Gecamine will transfer any warranties or indemnities concerning the land interests to KCC.
The miner will have to offset an amount of upto $120mn against the contingent “pas de porte” obligation if it declares a Joint Ores Reserve Committee compliant reserve, or if it mines any reserved location in the acquired land. A royalty of 2.5pc of net sales will be also be shared with Gecamines if KCC mines the resources in the acquired land area.