Africo Resources Limited

completed

The Kalukundi Cobalt-Copper Project (or Kalukundi) involves the construction of a greenfield open pit mining operation and cobalt-copper solvent extraction and electro-winning plant to produce cobalt and copper metal. The project is located in the Kolwezi District of the Katanga Province in the South East of the DRC. The total project cost is estimated at $235 million after including capital costs, contingencies, working capital costs and interest during construction. The Kalukundi Concession is held by a JV, Swanmines sprl, owned 75% by ARL (a Canadian junior mining company) and Gecamines – the state-owned mining company – holds the remaining 25% interest. The Concession contains a number of ore ‘fragments’, several of which have been found to be mineralized and will be mined initially by open pit methods. IFC intends to take an equity interest in ARL, in order to support the conversion of resources to reserves through further exploration (drilling), on-going feasibility study work, including supporting the upgrading of environmental and social planning and documentation to meet international standards.