Australia's Anvil mining company has defended itself against accusations that it was complicit in an

Published by MAC on 2005-06-23

Australia's Anvil mining company has defended itself against accusations that it was complicit in an attack, made last October by the Congo (DRC) army, and which resulted in the massacre of dozens of unresisting rebels.

Not surprisingly, in what is still a war situation for much of the country, it is difficult to assess the truth. However, according to a report on the "incident", carried in the Mining Journal (October 22 2004):

* Anvil mining claimed to have held talks with the rebel group, shortly after it attacked the town of Kilwa (some 50km south of its Dikulushi mine) - which triggered the massacre. The rebels told the company it had no interest in the mine.

* Anvil re-started its operations (after a temporary closure) a few days later, but also held "discussions" with the Congolese government to "provide addidional security for the mine so that, should such incidents occur again, the company would be able to continue operaitons."

It is therefore reasonable to assume that Anvil was more aware than it admits, of the purposes to which its requisitioned trucks and planes would likely be put. And why did it issue no statement condemning, or disassociating itself from, the army's actions, until now?

Mining company denies helping with deadly attack in Congo

Drew Hasselback CanWest News Service; Financial Post

June 23 2005

Toronto - Anvil Mining Ltd. is defending itself against accusations that it helped the military of the Democratic Republic of Congo wage a deadly attack on rebels near the company's Dikulushi copper and silver mine.

Anvil said Tuesday that the Congo army ``commandeered'' company trucks and planes used in the military operation last October. The Australian company, which is listed on the TSX in Toronto, denied having advance knowledge about how the equipment would be used.

Human rights groups claim that dozens of people in the town of Kilwa were killed on Oct. 14 after Congolese soldiers put down a rebel uprising. Kilwa is located 50 kilometres away from the Dikulushi mine, which is 90 per cent owned by Anvil.

``Although at the time, Anvil had no knowledge of the occurrence of human rights abuses, we are now learning, it was a terrible event,'' the company said Tuesday.

The declaration reinforces a similar statement issued on June 7, in which Anvil, based in Perth, Australia, responded to Australian media reports connecting the company with the Kilwa incident.

``The idea that Anvil somehow influenced the military action, or should be seen as complicit in the military action, is nonsense,'' the company said.

The Kilwa incident highlights the difficulties of doing business in the strife-torn African nation, which is striving for political stability after years of civil war that have claimed more than one million lives.

Still, several miners believe the mineral rich country is worth the risk. Mining accounts for 25 per cent of the country's gross domestic product.

AngloGold Ashanti Ltd., the world's second largest gold miner, said Tuesday it will keep an exploration office in Congo. The Johannesburg-based miner has come under fire because earlier this month it admitted paying $8,000 to a local militia group.

Toronto-based junior Banro Corp. is spending $10 million to drill four gold properties in Congo this year. Just seven years ago, Banro was left reeling after the Congolese government seized the company's mining licences. The licences were eventually returned. Now Banro says it believes political stability is returning to Congo, particularly as the country ramps up for the first democratic elections in four decades.

Anvil is also well acquainted with the pitfalls of doing business in Congo.

Just last month, Anvil secured a political risk insurance policy for the Dikulushi mine from an agency affiliated with the World Bank.

Anvil's open pit Dikulushi mine started operations in 2002. Located in the resource rich province of Katanga, it produces 20,000 tonnes of copper and 1.6-million ounces of silver a year. The mine is supposed to be a comfortable distance from much of the fighting, and Anvil considers the October incident to be a fluke.

``The property is located far from the hot areas,'' said Robert La Valliere, Anvil's Montreal-based vice president of investor relations.

``I don't know why it did, but it happened there. You had some rebels who went to the town, took over the town and made some trouble.''

La Valliere said Anvil is answering questions about the incident from the Canadian and Australian governments, as well as officials from the United Nations. ``We're providing information to them and exchanging documentation.''

Media reports say that last October, rebels seized the police station in Kilwa, then looted Anvil's supply depot of equipment and food. The government struck back on Oct. 14. Some reports say more than 100 villagers were killed.

Anvil evacuated its own employees from the region and returned them a few days later. Mine operations were suspended for a couple of days, then resumed.