GOMA, DEMOCRATIC REPUBLIC OF CONGO--(Marketwired - Jan. 16, 2017) - Alphamin's Bisie Mining Project in the North Kivu Province of the Democratic Republic of Congo received official endorsement with a strong vote of Government support with the establishment of a North Kivu Government support committee for the development of the Bisie Tin Project.
Alphamin Resources Corp. (TSX VENTURE:AFM) ("Alphamin" or the "Company") is pleased to announce the establishment of a committee by the North Kivu Government to support Alphamin subsidiary, Alphamin Bisie Mining, S.A. (ABM), to develop its Bisie tin project (80.25% AFM ownership). ABM is developing the Bisie Tin Project with plans to begin full production in 2019.
North Kivu Governor Julien Paluku Kahongya signed the legal order in Goma on 20 December, 2016 creating the Committee to Accompany ABM in Implementing its Mine at Bisie (CAIMB in French) in order to both support ABM and to inform the Provincial Authorities of potential impediments to the project. The CAIMB is composed of high-level technical and specialized services who will assist in guiding ABM for the three years of construction and initial operations. A branch of the CAIMB will be created in Walikale Territory to engage with local authorities in the same way.
Confirming the Province's strong commitment to promoting private investment and public-private partnership in North Kivu, Governor Julien Paluku stated: "The provincial government is committed to providing a favourable environment for private investment in a win-win partnership. We affirmed this in two economic forums of the province held in 2010 and 2015. North Kivu has indeed an enormous economic potential to exploit for the benefit of its population. We must support Alphamin, so that other investors in the mining, agriculture, energy and tourism sectors are reassured to follow the example and invest responsibly."
The North Kivu provincial minister in charge of mines, Professor Anselme Kitakya, who is responsible for the smooth operation of the CAIMB, adds: "Alphamin is already demonstrating the importance of partnership with the government of North Kivu by co-financing the rehabilitation of the Sake-Masisi-Walikale road for approximately 230 km and through the contribution to social development within the framework of the Lowa Alliance, a non-profit foundation initiated by the populations that will be supported by the mining project that develops ABM in the territory of Walikale. Socio-economic infrastructures will be erected in the area surrounding the Bisie mining site. We are committed to providing support and advice to investors such as ABM."
Alphamin CEO Boris Kamstra commented, "North Kivu has many assets and remarkably industrious people, from which past events have diverted investors' attention. This is a very encouraging sign and helps us in our role as ambassadors for North Kivu to global investors to convey the support of government, nationally, provincially and locally which will assist Alphamin with the development of our Bisie Tin Project."
Richard Robinson, Managing Director of ABM, echoed these sentiments: "As the Bisie Tin Project moves forward in road and preliminary construction activities, including the ventilation tunnel, we are seeing increasing support from local and national stakeholders through actions such as that of the North Kivu Governor. This reinforces the progress made by Alphamin in 2016 with the signing of a collaborative Memorandum of Understanding with the Walikale Community in April and June, 2016, followed by concrete social development projects such as the construction of the new Luuka Primary School and the formal founding and registration of the Lowa Alliance, as well as partnerships with North Kivu and the national road agency in rehabilitating the Masisi Walikale road."
It is anticipated that ABM will employ approximately 700 people during construction and will create approximately 450 permanent local jobs during operations. As a result, significant economic benefits are expected in an area of the DRC that has seen little foreign investment while overcoming security and governance challenges for decades. The mine is estimated to produce 10,000 tonnes of tin in concentrate on average per year over the 12-year mine lifespan, which represents about 3% of the world's current production and will double the DRC's current tin exports. Alphamin and North-Kivu actors understand the project will serve as an example for foreign investment and will also serve as an infrastructure platform for other businesses to start, including service providers to the mine. Indirect job creation will be far higher than the mine's direct numbers and can be reasonably expected to achieve the 1:14 ratio of indirect jobs commonly reported in Africa for similar projects, resulting in potentially an additional 6,300 jobs.
ABM S.A. is a Congolese commercial enterprise which holds a national exploitation permit for the Bisie concession until 2045 and, in addition to AFM's shareholding (80.25%), the balance of shares are held by the Governments of the DRC (5%) and the Republic of South Africa (15%) through its "Industrial Development Corporation."
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.
ISSUED ON BEHALF OF THE BOARD OF DIRECTORS OF ALPHAMIN RESOURCES CORP. BY
Boris Kamstra, Chief Executive Officer
MORE INFORMATION ON ALPHAMIN RESOURCES CORP.:
Alphamin is a tin exploration and development company with the vision to be respected in the international tin sector by unleashing the full profit and potential of its world-class tin asset in North Kivu, DRC currently under development.
Alphamin has the vision to become a premier tin producer by:
- Leading a world-class, profitable mining company in North Kivu, delivering results for the benefit of all stakeholders and viewed with respect by the communities and Government.
- Becoming a profitable tin producer, while continuing with exploration to increase life of mine. ABM intends to operate a profitable tin mine in a safe environment and uplifting the local community. Alphamin is striving to develop the first, low-cost per tonne tin, commercial mine in North Kivu, while at the same time making a marked, positive impact on the communities surrounding the mine. We intend to be a tin mining company that excels at the production of tin and provides leadership for the region in terms of safety, health, environment and community development.
- Delivering on the commitment to develop the first and large, commercial tin mine in that part of the country - giving Alphamin credibility locally and abroad - and becoming a business transformation reference in the tin mining industry.
- Creating value for both shareholders and the community.
- Committing, from the date of production, to spend 4% of its in-country operating and administrative expenses on community development. This investment will be governed with representative input from local communities and managed by the Lowa Alliance, a GDRC-regulated not-for-profit foundation. Alphamin will continue to preserve its legal rights to develop Bisie and explore ways to assist artisanal miners to transition from illegal to legal status, conflict-free sites elsewhere in the region.
- The community projects, supported by the Alliance, being selected following an in-depth survey of the 13500 households (approximately 80 000 residents) across the 44 communities closest to Bisie. Representative committees will prioritise a range of projects to promote social and economic development to which they, local authorities and potentially external donors, will also contribute. These projects would provide incentives for income beyond illegal artisanal mining while also providing educational and health infrastructure and services like potable water, malaria reduction and treatment and primary health care capacity building.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Forward-looking statements contained herein include, without limitation, statements relating to costs of production, success of mining operations, the ranking of the project in terms of cash cost and production, economic return estimates, social, community and environmental impacts, and continued positive discussions and relationships with local communities and stakeholders. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although Alphamin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: Alphamin's ability to secure sufficient financing to advance and complete the Bisie Tin Project, uncertainties associated with Alphamin's resource and reserve estimates, uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties associated with securing off-take agreements and customer contracts, uncertainties with respect to social, community and environmental impacts, adverse political events, uncertainties with respect to optimization opportunities for the Bisie Tin Project, as well as those risk factors set out in the Company's Management Discussion and Analysis and other disclosure documents available under the Company's profile at www.sedar.com. Forward-looking statements contained herein are made as of the date of this news release and Alphamin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws."