GRAND BAIE, MAURITIUS--(Marketwired - Nov. 8, 2016) - Alphamin Resources Corp. (TSX VENTURE:AFM) ("Alphamin" or the "Company") is pleased to announce that its 80.75% owned DRC subsidiary Alphamin Bisie Mining SA ("ABM"), which is building an industrial tin mine in Walikale Territory of North Kivu Province in the eastern DRC, has joined the Conflict-Free Sourcing Initiative ("CFSI").
ABM is developing the Bisie Tin Project with plans to begin full production in 2019. ABM's membership in the CFSI will help position ABM as a leader in the conflict-free mining community and will assist in understanding the needs of downstream buyers to assure market access for its material.
ABM intends to deliver on its commitment to develop the first industrial tin mine in North Kivu through significant capital investment, which will give ABM credibility locally and aboard, positioning it as a business transformation reference in the tin mining industry. At the same time Alphamin is already investing in schools, healthcare, community infrastructure and agricultural and economic development through the Lowa Alliance, a not for profit foundation that will administer ABM's financial contributions for community development.
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 projected 12-year mine lifespan, which represents about 3% of the world's current production and will double the DRC's current tin exports.
"By becoming a member of CFSI, it provides a great opportunity to help inform downstream buyers of the reality on the ground to assure market access," said Richard Robinson, Managing Director for ABM. "It also will afford the mine input from the CFSI on activities, programs and tools, to assure the credibility of our responsibly produced tin exports, which will be the first industrial conflict-free mineral exports from the DRC and neighboring countries."
"We believe that a commercial mine at Bisie will be the manifestation of the objectives of the OECD Due Diligence Guidance and related responsible sourcing legislation, including the US Dodd Frank Act in promoting responsible supply chains," said Boris Kamstra, Chief Executive Officer of Alphamin. "The CFSI's framework has helped to lay the foundation for the Bisie mine to move from potentially being a fundamental revenue generator for armed groups and others operating outside of the law and any appreciation for the sanctity of human life, to a commercial operation that will be catalytic to the development of North Kivu's economy, improving governance, safety and security, offering the citizens of North Kivu future prospects significantly brighter than any they have had for a long time."
"ABM is the first mining company to join the initiative", said Leah Butler, Program Director, CFSI. "Its participation will provide valuable insight into mining operations and challenges in eastern DRC that can further improve the CFSI's understanding of and assistance to upstream segments of the supply chain. We look forward to ABM's active engagement with the program as the CFSI and its members continue to highlight the value of responsible sourcing from conflict-affected and high-risk areas."
The burden of proof falls primarily on ABM to prove the conflict-free status of its tin concentrate produced for smelting so that global smelters can confidently conduct due diligence. Material that is not traceable to its source is unsaleable in the open market, since global smelters are under increasing pressure to provide independent validation of their practices to their customers. ABM will supply responsibly produced tin from eastern DRC and the ABM operation will be a demonstration of what can be achieved there.
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
Tel: +230 269 4166
Grand Baie, Mauritius
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 13 500 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.
MORE INFORMATION ON CONFLICT-FREE SOURCING INITIATIVE:
- The CFSI is a voluntary, private sector-led initiative founded by the EICC and the Global e-Sustainability Initiative (GeSI) in 2008 and operated as a consortium of companies.
- The CFSI provides companies with tools and resources to assist with demonstrating compliance with the US Dodd-Frank Wall Street Reform and Consumer Protection Act, proposed and pending legislation in the European Union and elsewhere, and conformance to the OECD Due Diligence Guidance for Responsible Sourcing from Conflict-Affected and High-Risk Areas.
- Additionally, the CFSI manages the Conflict-Free Sourcing Program (CFSP) as a means of auditing the management systems and sourcing practices of tin, tantalum, tungsten and gold smelters to aid in responsible sourcing and due diligence across global supply chains.
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."