AVZ Discussion 2022

[Azzler]

All good Azzler . I'm just asking questions . For someone who has the inside running you are very emotional . IMO

I know right, those emotions, just keep taking me over, I just don't know what to do with myself.
No but go on, have another crack at the "emotional" angle, it might work next time. Doug? is it?

 

[Azzler]

All good Azzler . I'm just asking questions . For someone who has the inside running you are very emotional . IMO

Anyway I distracted us for a moment there, lets get back on track, where were we.. oh right, turning shareholder sentiment negative on BoD's activities, in particular, hiring MMM.
BOO! come on holders, BOO!!!

 

[Samus]

It's definitely in the May 4th 2022 ministerial decree announcement. Screenshot of the relevant part in my post above yours.

Thank you sir. Carry on.

 

[Azzler]

iM jUst AskInG QuesTioNs!

 

[wombat74]

iM jUst AskInG QuesTioNs!

Ok Azzler . I apologise . I didn't mean to tip you over the edge . We all want AVZ to succeed . I'll admit I do get over critical at times , but sometimes it does feel like we are all being f--ked over with the pointy end of the pineapple . imo

 

[Azzler]

Ok Azzler . I apologise . I didn't mean to tip you over the edge . We all want AVZ to succeed . I'll admit I do get over critical at times , but sometimes it does feel like we are all being f--ked over with the pointy end of the pineapple . imo

Thank you my dear wombles, you've brought be back from the edge with your rationale and wisdom of words.
May we all meditate in the warmth of your healing words.

 

[Ashlee]

 

[MoneyBags1348]

I haven't seen that in the mining code. The specific part of the legislation only mentions the applicant. I reckon AVZ would have cited the mining code as well as the Dathcom JV if the state owned entity had to do it.

Also there would have been no need to put that clause in the JV if it was Cominiere's responsibility automatically in the mining code

View attachment 41993
View attachment 41992

I had a look at these two sites and found these bits of information Carlos, probably not much help

III Mining rights and required licences and permits​

i Title​

Underground minerals belong exclusively to the state. However, any private party may be authorised by the state to engage in mining activities (from exploration to exploitation and distribution), provided that specific objectives of eligibility, priority and capacity criteria set forth in the Mining Code are met. The types of mining permits available in the DRC are research permits, exploitation permits (including small-scale mines) and tailing exploitation permits. Specific legislation regarding artisanal mining and quarry rights also exists.

Companies that wish to develop mining activities in the DRC are required either to incorporate a Congolese company or to elect domicile with a 'mining agent' as a condition of eligibility to obtain an exploitation permit. In addition, to be eligible for a mining permit, companies are obliged to either form a joint venture with a state-owned company (such as Gécamines) that already holds the necessary permits, or freely assign a mandatory 10 per cent stake of its share capital to the DRC.

Mining Law: Democratic Republic of the Congo

Mining Law: Democratic Republic of the Congo

thelawreviews.co.uk

https://congomines.org/system/attachments/assets/000/000/101/original/GOVRDC-2003-ReglementMinier-EN.pdf?1430927814

 

[Onthefm]

All good Azzler . I'm just asking questions . For someone who has the inside running you are very emotional . IMO

I think the squirrels may have misplaced there nuts and are frantically looking for them. Ha Ignorance is bliss.

 

[Mr Inappropriate]

I had a look at these two sites and found these bits of information Carlos, probably not much help

III Mining rights and required licences and permits​

i Title​

Underground minerals belong exclusively to the state. However, any private party may be authorised by the state to engage in mining activities (from exploration to exploitation and distribution), provided that specific objectives of eligibility, priority and capacity criteria set forth in the Mining Code are met. The types of mining permits available in the DRC are research permits, exploitation permits (including small-scale mines) and tailing exploitation permits. Specific legislation regarding artisanal mining and quarry rights also exists.

Companies that wish to develop mining activities in the DRC are required either to incorporate a Congolese company or to elect domicile with a 'mining agent' as a condition of eligibility to obtain an exploitation permit. In addition, to be eligible for a mining permit, companies are obliged to either form a joint venture with a state-owned company (such as Gécamines) that already holds the necessary permits, or freely assign a mandatory 10 per cent stake of its share capital to the DRC.

Mining Law: Democratic Republic of the Congo

Mining Law: Democratic Republic of the Congo

thelawreviews.co.uk

View attachment 41995

https://congomines.org/system/attachments/assets/000/000/101/original/GOVRDC-2003-ReglementMinier-EN.pdf?1430927814

Need to be a bit careful here - this extract is from the 2003 REGULATIONS and is out of date. Also the mining code (legislation) takes precedence over these regulations.

Edit: The regs are more procedural in nature.

I’ve scoured the whole fucking internet for the english version of the 2018 regs, but to no avail. Even wrote to law firms in Africa and they were of no help.

I do have the French version of the 2018 regs and can translate bits as required (it’s about 500 pages long from memory so it’s not fun…).

Also, @Carlos Danger ’s earlier post is on the money. Per the Mining Code the applicant (Dathcom) has to cede 10% of its issued capital. Who’s share that comes from will be described in the Dathcom JVA.

 

[Winenut]

Need to be a bit careful here - this extract is from the 2003 REGULATIONS and is out of date. Also the mining code (legislation) takes precedence over these regulations.

Edit: The regs are more procedural in nature.

I’ve scoured the whole fucking internet for the english version of the 2018 regs, but to no avail. Even wrote to law firms in Africa and they were of no help.

I do have the French version of the 2018 regs and can translate bits as required (it’s about 500 pages long from memory so it’s not fun…).

Also, @Carlos Danger ’s earlier post is on the money. Per the Mining Code the applicant (Dathcom) has to cede 10% of its issued capital. Who’s share that comes from will be described in the Dathcom JVA.

That is correct (10% must be ceded per the mining code from the applicant Dathcom) and the Dathcom JVA (thank you Carlos) then seems to indicate in clause 5.1(i) that it must come from Cominiere

 

[pow4ade]

Need to be a bit careful here - this extract is from the 2003 REGULATIONS and is out of date. Also the mining code (legislation) takes precedence over these regulations.

Edit: The regs are more procedural in nature.

I’ve scoured the whole fucking internet for the english version of the 2018 regs, but to no avail. Even wrote to law firms in Africa and they were of no help.

I do have the French version of the 2018 regs and can translate bits as required (it’s about 500 pages long from memory so it’s not fun…).

Also, @Carlos Danger ’s earlier post is on the money. Per the Mining Code the applicant (Dathcom) has to cede 10% of its issued capital. Who’s share that comes from will be described in the Dathcom JVA.

The ceding provision was originally 5% under the 2002 Code, amended to 10 % in the 2018 updated Code:

The 2002 Mining Code included a requirement for 5 per cent State ownership in all mining companies awarded a mining licence, which has been doubled to 10 per cent. As before, the State share is free-carried and non-dilutable.3

The State interest has also been clarified in the context of a transfer of a mining right, with an explicit right of the State to a minimum 10 per cent free-carried interest in the acquiring company.4

Upon each renewal of a mining licence, the State will be entitled to an additional 5 per cent interest in the holder of the right, in addition to its existing shareholding.5

https://www.herbertsmithfreehills.c...cratic-republic-of-congos-revised-mining-code

 

[John25]

Wasnt it August 2020 we were about 6 weeks away from a ML or was it 2021

 

[Remark]

View attachment 42006
Wasnt it August 2020 we were about 6 weeks away from a ML or was it 2021
View attachment 42007

If / when it happens, no one here will believe it anyway

 

[Mr Inappropriate]

So i think we‘re all on the same page - 10% of this issued capital of Dathcom has to be ceded to the DRC government by Cominere.

Can someone tell Celestin?

 

[pow4ade]

Can someone tell Celestin?

And MoP lol

 

[Samus]

So i think we‘re all on the same page - 10% of this issued capital of Dathcom has to be ceded to the DRC government by Cominere.

Can someone tell Celestin?

Tried that, what's next?



Production work will now begin!

Yes because now that you have recovered 10% of Dathcom you will have to give it to the government!

 

[Carlos Danger]

View attachment 42006
Wasnt it August 2020 we were about 6 weeks away from a ML or was it 2021
View attachment 42007

May 2021. Licence to be expedited by the DRC government so we can maintain schedule to deliver first SC6 on train by Q1 2023. From memory Nigel made his 6 weeks comment in an interview around the time of this announcement.

 

[Carlos Danger]

The ceding provision was originally 5% under the 2002 Code, amended to 10 % in the 2018 updated Code:

The 2002 Mining Code included a requirement for 5 per cent State ownership in all mining companies awarded a mining licence, which has been doubled to 10 per cent. As before, the State share is free-carried and non-dilutable.3

The State interest has also been clarified in the context of a transfer of a mining right, with an explicit right of the State to a minimum 10 per cent free-carried interest in the acquiring company.4

Upon each renewal of a mining licence, the State will be entitled to an additional 5 per cent interest in the holder of the right, in addition to its existing shareholding.5

https://www.herbertsmithfreehills.c...cratic-republic-of-congos-revised-mining-code

This strengthens my argument that the writing of Article 5.1 (i) of the Dathcom JVA was done that way in case of a change in the mining code of the % required by the applicant to cede to the DRC government

The Dathcom JVA was signed in 2017 when the amount was 5%. If the JVA had of specified 5% instead of assigning Cominiere the responsibility of transferring 'part' of their holding they would have only been legally responsible for 5% when the mining code changed it to 10% in 2018 and the other 5% would need to be pro rata.

As much as it pains me to say it the structuring of this clause was quite clever by Klaus

 

[Samus]

This strengthens my argument that the writing of Article 5.1 (i) of the Dathcom JVA was done that way in case of a change in the mining code of the % required by the applicant to cede to the DRC government

The Dathcom JVA was signed in 2017 when the amount was 5%. If the JVA had of specified 5% instead of assigning Cominiere the responsibility of transferring 'part' of their holding they would have only been legally responsible for 5% when the mining code changed it to 10% in 2018 and the other 5% would need to be pro rata.

As much as it pains me to say it the structuring of this clause was quite clever by Klaus

I'm sure it was a lawyer, not Klaus.
He'd have been busy smoking bongs and playing with floaters in the pool.