Congo copper giant to invest in Namibia

THE George Forrest International Group – the largest copper and cobalt mining conglomerate in the Democratic Republic of the Congo – on Tuesday committed to strategic investments amounting to an estimated N$3 billion in Namibia’s manufacturing, mining and energy sectors.

In an exclusive interview late on Tuesday in Windhoek, the veteran DRC entrepreneur George Forrest announced that his company is to buy out a major local uranium interest, erect a cement plant in the Karas Region and invest in the Namibian energy sector. Mines and Energy Minister Erkki Nghimtina, who was present at the meeting, welcomed the investment.He said during a time of depressed international economic conditions, such an investment was especially welcome.”The international commodities trade is going through a very tough time at the moment, and we really welcome Mr Forrest’s decision to invest in Namibia under these very difficult circumstances,” Nghimtina said.Forrest declined to comment on the specific amount he intends investing in Namibia, but the cement plant alone would cost in the region of US$150 to US$170 million, and would produce one million tons of cement a year, he said.Forrest, accompanied by his executive vice president Pierre Chevalier, declined to name the uranium explorer (a publicly listed entity) involved because of regulatory restrictions requiring that a cautionary notice first be filed with the various international stock exchanges to this effect.”Today, we signed an agreement with one of the big (exploration) companies in Namibia … we will make a more precise communication in a few days,” once statutory procedures have been completed, Forrest said.The cement plant, which he expected to come to fruition once feasibility studies have been completed, would export its excess production to neighbouring countries like South Africa and Angola.Both countries were experiencing an acute shortage of cement in the wake of a major building boom in both countries – South Africa’s preparation for the World Cup 2010, and Angola’s US$20 billion national reconstruction programme, Chevalier pointed out.The cement plant would provide a major economic boost to Namibia’s under-developed South, and was expected to attract many ancillary investments in the immediate area.”We are sure that this will create many jobs in the area,” Forrest said.As for concerns that the cement plant may be affected by the regional electricity shortage, Forrest said his company intended to become involved in the construction of the long-planned hydroelectric scheme on the Kunene River.Forrest’s company also signed an agreement to become involved in the Zimbabwean coal-fired power station at Hwange, which a year ago entered into agreement with local power utility NamPower to invest some $40 million in its rehabilitation, Forrest further said.Asked why he chose Namibia to invest in, Forrest said he was “very impressed” by Namibia’s infrastructure and regulatory environment, and believed that the country had a bright economic future.Because of his company’s experience in similar sectors in the DRC, Namibia represented a “great opportunity”, he said.”Namibia in my view, is a country with a very positive future for economic growth, and represent a very good return on investment,” he said.Investments of similar nature in the DRC, he said by way of explanation, offered great opportunities but also came with great risk because of continued political instability and a general lack of security.The 68-year-old Forrest, whose company late last year bought out Nikanor Plc, which owned the rights to Kolwezi’s fabled copper and cobalt deposits at the so-called KOV Mine, is considered one of the most powerful businessmen in the DRC.George Forrest International is currently the operator of all of the former Gecamines copper and cobalt mines, which are estimated to hold 40 and 60 per cent of all known copper and cobalt deposits in the world.* John Grobler is a freelance journalist; 081 240 1587Mines and Energy Minister Erkki Nghimtina, who was present at the meeting, welcomed the investment.He said during a time of depressed international economic conditions, such an investment was especially welcome.”The international commodities trade is going through a very tough time at the moment, and we really welcome Mr Forrest’s decision to invest in Namibia under these very difficult circumstances,” Nghimtina said.Forrest declined to comment on the specific amount he intends investing in Namibia, but the cement plant alone would cost in the region of US$150 to US$170 million, and would produce one million tons of cement a year, he said. Forrest, accompanied by his executive vice president Pierre Chevalier, declined to name the uranium explorer (a publicly listed entity) involved because of regulatory restrictions requiring that a cautionary notice first be filed with the various international stock exchanges to this effect.”Today, we signed an agreement with one of the big (exploration) companies in Namibia … we will make a more precise communication in a few days,” once statutory procedures have been completed, Forrest said.The cement plant, which he expected to come to fruition once feasibility studies have been completed, would export its excess production to neighbouring countries like South Africa and Angola.Both countries were experiencing an acute shortage of cement in the wake of a major building boom in both countries – South Africa’s preparation for the World Cup 2010, and Angola’s US$20 billion national reconstruction programme, Chevalier pointed out.The cement plant would provide a major economic boost to Namibia’s under-developed South, and was expected to attract many ancillary investments in the immediate area.”We are sure that this will create many jobs in the area,” Forrest said.As for concerns that the cement plant may be affected by the regional electricity shortage, Forrest said his company intended to become involved in the construction of the long-planned hydroelectric scheme on the Kunene River.Forrest’s company also signed an agreement to become involved in the Zimbabwean coal-fired power station at Hwange, which a year ago entered into agreement with local power utility NamPower to invest some $40 million in its rehabilitation, Forrest further said.Asked why he chose Namibia to invest in, Forrest said he was “very impressed” by Namibia’s infrastructure and regulatory environment, and believed that the country had a bright economic future.Because of his company’s experience in similar sectors in the DRC, Namibia represented a “great opportunity”, he said.”Namibia in my view, is a country with a very positive future for economic growth, and represent a very good return on investment,” he said.Investments of similar nature in the DRC, he said by way of explanation, offered great opportunities but also came with great risk because of continued political instability and a general lack of security.The 68-year-old Forrest, whose company late last year bought out Nikanor Plc, which owned the rights to Kolwezi’s fabled copper and cobalt deposits at the so-called KOV Mine, is considered one of the most powerful businessmen in the DRC.George Forrest International is currently the operator of all of the former Gecamines copper and cobalt mines, which are estimated to hold 40 and 60 per cent of all known copper and cobalt deposits in the world.* John Grobler is a freelance journalist; 081 240 1587