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This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Summary of Project Information (SPI)
Project number 11703
Project nameKingamyambo Musonoi Tailings SARL
CountryCongo, Democratic Republic of
Environmental categoryB
Date SPI disclosedMarch 22, 2005
Projected board dateMay 12, 2005
Date revised SPI disclosedAugust 22, 2008
Previous EventsInvested: March 10, 2006
Signed: November 1, 2005
Approved: May 12, 2005

Project sponsor and major shareholders of project company
KMT is currently owned 82.5% by Congo Mineral Developments Limited (“CMD”), 12.5% by Gécamines, the state-owned mining company, and 5% by the government of DRC. CMD is a wholly owned subsidiary of Adastra Minerals Inc. (“the Sponsor”). The Sponsor is a junior mining company that was formed in 1995, since when it has mainly focused on developing mineral opportunities in Africa. Its head office is in London, England. It is listed on the Toronto Stock Exchange and on the Alternative Investment Market of the London Stock Exchange and is widely held, with a market capitalization at US$114.9 million as of February 24, 2005. Should IFC’s proposed investment be approved, it will acquire an up to 10% stake in KMT from CMD. The Industrial Development Corporation (“IDC”), a South African development finance institution, has already elected to exercise its own option to acquire a 10% stake in KMT. IFC may also exercise warrants in the Sponsor which could result in them owning up to about 0.5% of the Sponsor.

Total project cost and proposed IFC investment
The estimated total project cost is $50.0 million of which about $32.0 million has already been spent by the Sponsor and CMD. The proposed IFC investment of up to US$6.4 million equity investment to acquire an up to 10% stake in KMT.

IFC investment as approved by Board
5.9 million (USD)
Product LineIFC Investment (million USD)
Risk Management 

Location of project and description of site
Kolwezi is a well established mining town, with considerable existing infrastructure including a railway, power supply, and small airport. The tailings reserves are contained in a tailings dam about 2km from Kolwezi town, and over a length of about 11km in the Musonoi river, downstream of the town. Subject to confirmation by the DFS, it is expected that the tailings will be piped as a slurry to a greenfield processing plant, for which a site has provisionally been identified in a rural area 8km north west of Kolwezi town.

Description of company and purpose of project
This SPI has been revised in order to reflect a slight change in the wording related to the process of categorization of any potential future investment in this project to ensure consistency with IFC procedures.

The project is to prepare a definitive feasibility study (DFS), including marketing, technical, and environmental and social impact studies, for the re-treatment of processed oxide tailings from the Kolwezi concentrator, located in Katanga province, which began operations in the early 1950’s. Owing to the poor recovery rates obtained at the time, valuable amounts of copper and cobalt were discharged in the form of tailings. The tailings reserve consists of 112 million tonnes grading 1.49% copper and 0.32% cobalt. Preliminary technical studies indicate that a leaching and solvent extraction plant costing about US$300 million could produce 30,000 tonnes per annum (“tpa”) of copper and 5,500 tpa of cobalt, although technical, marketing, and financing factors, to be considered during the DFS, may dictate a staged development. The project company is Kingamyambo Musonoi Tailings SARL (“KMT”), a Congolese company which has been created for the purpose of exploiting the tailings.

Environmental and social issues - Category B
This project has been categorized as a Category B project according to IFC’s environmental and social review procedure as it is an equity investment to provide funding for a feasibility study, detailed engineering and environmental and social assessment (ESIA) documentation. Any future mine development financing would be appraised by IFC as a new project, with a new environmental classification based upon the project’s risks and impacts. Based upon review of existing environmental documentation, it is considered likely that IFC support for future mine development financing at the site would be classified as a Category A project according to IFC’s Environmental & Social Review Procedure.

The Category A ESIA documentation is currently under preparation and will be reviewed and approved by IFC to ensure that, prior to financing and construction, the development stage meets IFC environmental and social standards.

To view the environmental documents for this project, click here

Location of environmental documents in locally affected community
The Environmental Review Summary (ERS) and the initial Environmental Audit completed by SRK during 2003 and the Public Consultation and Disclosure Plan (PCDP) as well as the Public Scoping Report (PSR) are available at the offices of CMD and KMT in Lubumbashi and Kolwezi for consultation by the public, at the following addresses:

KMT SARL, Villa Munua, Route de Golf, Golf, Lubumbashi, DRC
KMT SARL , 617 Avenue Lumumba, Zone Manika, Kolwezi, DRC
The Sponsor’s Environmental and Social Policies, Community Development Policy and PCDP can be found on Adastra’s website:

To contact the project company, please write to:
KMT SARL, Villa Munua, Route de Golf, Golf, Lubumbashi, DRC
KMT SARL , 617 Avenue Lumumba, Zone Manika, Kolwezi, DRC
E-mail f.colette@ic-lubum.cd

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