Burundi state takes stake in mine

By on July 7, 2014 in Mining, Politics with 0 Comments

Burundi’s government took a 15 percent stake in a project to build a nickel and iron mine led by Burundi Mining Metallurgy (BMM), Danko Konchar, the chief executive of Kermas Group, the majority owner, said last week. 

The state’s stake in Burundi Musongati Mining, of which BMM holds the remaining 85 percent interest, was part of the terms of a mining licence agreement signed this month, Konchar said. 

The project would require investment to construct the mine and a facility to process 1 million tons of ore annually into iron, nickel and cobalt within the next five years, said Konchar. The goal to increase capacity at the plant within a decade will cost about $3 billion (R31.9bn).

Source: Bloomberg

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About the Author

About the Author: Eugene Obiero is the founder of The Africa Resources Post and its predecessor The East African Energy Blog. Eugene has been writing and blogging on energy and extractives in Africa since June 2012. He is based in Nairobi, Kenya and works for Camco Clean Energy (http://www.camcocleanenergy.com/ ) as Senior Manager Africa Projects. He specializes in market entry strategy, research, financial advisory and project management. Eugene has an MBA from The Warwick Business School, University of Warwick (UK). The posts on this blogsite are Eugene's and do not necessary reflect the thinking of his employer, Camco Clean Energy. .

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