|
}}
'''Adastra Minerals Inc''' (formerly '''America Mineral Fields Inc'''),<ref name="CC"/> was a London-based mining company<ref name="DD">[https://www.mining-journal.com/capital-markets/news/1152658/adastra-rejects-quantum-approach "Adastra rejects First Quantum approach"], ''[[The Mining Journal (trade magazine)|Mining Journal]]'' (January 27, 2006)</ref><ref name="EE">[https://www.cbc.ca/news/business/first-quantum-raises-takeover-bid-for-adastra-minerals-1.614684 "First Quantum raises takeover bid for Adastra Minerals"], ''[[CBC News]]'' (March 20, 2006)</ref><ref name="BB">[https://www.thetimes.co.ukcom/business-money/companies/article/smaller-stock-to-watch-286nv2qbq6z "Smaller stock to watch"], ''[[The Times]]'' (May 2, 2006)</ref> with notable operations in central Africa ([[Angola]], [[Democratic Republic of Congo]], and [[Zambia]]), particularly in [[copper]], [[cobalt]] and [[zinc]] exploration. '''Adastra's''' properties and concessions were acquired in 2006 by [[First Quantum Minerals]] for $245m in cash and stock, outpacing a counter-offer by [[Mwana Africa plc]]. Founder Jean-Raymond Boulle and top UK insurer Prudential plc had owned 10% and 14% stakes in Adastra, respectively. In the mid-1990s, the company became known for developing highly prospective copper and cobalt mines in Zaire during a civil war.<ref name="BG">{{cite magazine |date=2007-11-02 |title=The Politics of mining |magazine=[[Finweek]] |issn=1812-4658 }}</ref>
In the mid-1990s, the company became known for developing highly prospective copper and cobalt mines in Zaire during a civil war.<ref name="BG">{{cite magazine |date=2007-11-02 |title=The Politics of mining |magazine=[[Finweek]] |issn=1812-4658 }}</ref>
==History==
===American Mineral Fields===
American Mineral Fields (AMF) was founded in 1995 to "develop diamond interests" in [[Brazil]]<ref name="BB"/> by Mike McMurrough and [[Jean-Raymond Boulle]].<ref name="BD">{{cite news |last=Block |first=Robert |date=1997-04-14 |title=Mining Firms Want a Piece Of Zaire's Vast Mineral Wealth |url=https://www.wsj.com/articles/SB86096506229890500 |newspaper=[[The Wall Street Journal]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410070937/https://www.wsj.com/articles/SB86096506229890500 |archivedate=10 April 2020 |url-status=live }}</ref> American Mineral Fields was based in [[Hope, Arkansas]] and operated from [[Canada]].<ref name="AU">{{cite book |last=Nabudere |first=Dani Wadada |authorlink=Dani Wadada Nabudere |editor1-last=Naidoo |editor1-first=Sagaren |editor2-last=le Pere |editor2-first=Garth |editor3-last=Lawson |editor3-first=Noelle |date=2003 |title=The War Economy in the Democratic Republic of Congo |chapter=Conflict over mineral wealth: Understanding the second invasion of the DRC |url=http://www.igd.org.za/jdownloads/Occasional%20Papers/op_37_chapter_3.pdf |isbn=1-919697-63-2 |publisher=Institute for Global Dialogue |location=Braamfontein |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410081816/http://www.igd.org.za/jdownloads/Occasional%20Papers/op_37_chapter_3.pdf |archivedate=2020-04-10 }}</ref> It was the "brainchild" of Boulle, a former executive at [[De Beers]] Diamonds in [[South Africa]].<ref name="AU"/> It was chaired by McMurrough, described as a personal friend of [[Bill Clinton]].<ref name="AV">{{cite book |last=Naidoo |first=Sagaren |date=2003 |title=The War Economy in the Democratic Republic of Congo |chapter=Economic motivation for the DRC conflict by Sagaren Naidoo |url=http://www.igd.org.za/jdownloads/Occasional%20Papers/op_37_chapter_3.pdf |isbn=1-919697-63-2 |publisher=Institute for Global Dialogue |location=Braamfontein |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410081816/http://www.igd.org.za/jdownloads/Occasional%20Papers/op_37_chapter_3.pdf |archivedate=2020-04-10 }}</ref>
Early on, it operated as a penny-stock company listed in [[Vancouver]]<ref name="AW">{{cite book |last=McNish |first=Jacquie |date=1998 |title=The Big Score |url=https://archive.org/details/bigscore0000mcni/ |location=Toronto |publisher=[[Doubleday Canada]] |page=[https://archive.org/details/bigscore0000mcni/page/330/ 330] |isbn=0-385-25758-9 |accessdate=2020-04-10 }}</ref> on the [[Vancouver Stock Exchange|Vancouver]] and [[Toronto Stock Exchange|Toronto stock exchange]]s, but "lacked sufficient capital to develop mines on its own."<ref name="AX"/> In 1996, when it was listed on the [[Toronto Stock Exchange]] for the first time, The [[Robertson Stephens]] Orphan Fund was among its largest shareholders.<ref name="BC">{{cite news |last=Morais |first=Richard C. |date=1998-08-09 |title=Friends in high places |url=https://www.forbes.com/global/1998/0810/0109038a.html |magazine=[[Forbes (magazine)|Forbes]] |volume=162 |issue=3 |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410070249/https://www.forbes.com/global/1998/0810/0109038a.html |archivedate=2020-04-10 }}</ref> In 1996, AMF was trading on the [[New York Stock Exchange]], with a capitalization of US $ 37 billion.<ref name="AU"/>
===Military financing in Africa===
AMFI had become involved in politics in the Congo<ref name="CE">{{cite journal |last=Taylor |first=Ian |date=2003 |title=Conflict in Central Africa: Clandestine Networks & Regional/Global Configurations |url=https://www.tandfonline.com/doi/abs/10.1080/03056240308372 |doi=10.1080/03056240308372 |journal=[[Review of African Political Economy]] |issn=0305-6244 |volume=30 |issue=95 |page=48 |accessdate=2020-04-10 }}</ref><ref name="AB">{{cite book |last=Nabudere |first=Dani Wadada |authorlink=Dani Wadada Nabudere |editor1-last=Naidoo |editor1-first=Sagaren |editor2-last=le Pere |editor2-first=Garth |editor3-last=Lawson |editor3-first=Noelle |date=2003 |title=The War Economy in the Democratic Republic of Congo |chapter=Conflict over mineral wealth: Understanding the second invasion of the DRC |url=http://www.igd.org.za/jdownloads/Occasional%20Papers/op_37_chapter_3.pdf |isbn=1-919697-63-2 |publisher=Institute for Global Dialogue |location=Braamfontein |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410081816/http://www.igd.org.za/jdownloads/Occasional%20Papers/op_37_chapter_3.pdf |archivedate=2020-04-10 }}</ref> by 1996, when [[Mobutu Sese Seko]] was the [[President of Zaire]], five years before he was deposed.<ref name="AX">{{cite book |last1=Renton |first1=David |last2=Seddon |first2=David |last3=Zeilig |first3=Leo |date=2007 |title=The Congo Plunder & Resistance |url=https://books.google.com/books?id=_9wMAQAAMAAJ |location=London |publisher=[[Zed Books]] |pages=181–182, 186, 196, 209 |isbn=1-84277-484-0 |accessdate=2020-04-10 }}</ref> Overall, the representatives of AMFI signed three agreements to equal the $1 billion dollar deal for "the extraction of copper and cobalt in Kolwezi, cobalt in Kipushi, and the construction of a factory for the treatment of zinc in Kipushi." In Kisangani, AMF acquired an office to buy diamonds. In Lubumbashi, AMFI gave an "advance" of $51 million to finance their war and secure a date for future transactions.<ref name="AX"/> The deal was later cancelled in 1998 by Congo's state mining company [[Gecamines]].<ref name="AY">{{cite news |date=1998-01-15 |title=Mining in Congo: Kolwezi tailings |url=https://www.economist.com/business/1998/01/15/kolwezi-tailings |newspaper=[[The Economist]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410075415/https://www.economist.com/business/1998/01/15/kolwezi-tailings |archivedate=10 April 2020 |url-status=live }}</ref>
AMFI financed the [[Alliance of Democratic Forces for the Liberation of Congo]] (ADFL)'s military campaign to depose Mobutu, by providing its corporate jet to ADFL leader [[Laurent-Désiré Kabila]], and was awarded a mine contract by Kabila even before he came to power.<ref name="AV"/>
In 1996, American Mineral Fields acquired Zairean mineral deposits using the state-owned mining company [[Gecamines]].<ref name="AU"/> Main AMF shareholder Jean-Raymonde Boulle signed the contract in mid April of 1996 in Zaire, calling the change “the triumphant liberation of the people of Zaire.<ref name="AU"/> In particular, a copper-zinc mine at Kapushi in Shaba province was acquired, with reserves known to "stand at 22.6 million tons of copper and zinc, grading 2.1 per cent copper and 13.8 per cent zinc." It was later revealed that acquisition was done partly for the [[Anglo-American Corporation]], with the two companies signing an agreement.<ref name="AU"/> This occurred before AFDL rebels captured Kinshasa.<ref name="AV"/> Around this time, AFDL rebels also extended a $60 billion contract to construct an orbital platform, beating out bidders from 60 other countries.<ref name="AV"/>
In April 1997,<ref name="AW"/><ref name="BE">{{cite news |last1=Bodipo-Memba |first1=Alejandro |last2=Block |first2=Robert |date=1998-01-09 |title=America Mineral Fields Sues Anglo-American Over Contract |url=https://www.wsj.com/articles/SB884298408459773000 |newspaper=[[The Wall Street Journal]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410071117/https://www.wsj.com/articles/SB884298408459773000 |archivedate=10 April 2020 |url-status=live }}</ref> with the signing of a $1 billion deal with Zairian rebels looking to topple dictator Mobutu Sese Seko, Bouule was promised the right to a mine in the city of Kolwezi.<ref name="AW"/> Kabila marched on the Zaire capital a month later, with American Mineral Fields getting one of the first mining contracts in the newly renamed Democratic Republic of Congo.<ref name="AW"/>
In March 1997, When Kisangani fell to the AFDL, AMFI set up an office in [[Goma]] to make contact with Kabila, trading under the initials AMZ.<ref name="BBA">{{cite magazine |last=Lokongo |first=Antoine |date=June 2001 |title=Congo: Business as Usual? (New African Market) |url=https://www.questia.com/magazine/1G1-82064494/congo-business-as-usual-new-african-market |magazine=[[New African]] |via= |issue=397 |accessdate= |archive-date=11 April 2020 |archive-url=https://web.archive.org/web/20200411003111/https://www.questia.com/magazine/1G1-82064494/congo-business-as-usual-new-african-market |url-status=dead }}</ref>
The company signed deals with rebel leaders in the Republic of Congo in 1997, and in 1998, the $1 billion Kolwezi project was cancelled, with AMF blaming Anglo American for "interfering in its dealings with Gecamines and the Congo government."<ref name="BH">{{cite news |last=Ashurst |first=Mark |date=1998-02-06 |title=Congo seeks to boost investor confidence |newspaper=[[Financial Times]] }}</ref>
On January 2, 1998, AMFI's contract for the Kolwezi tailings was cancelled by the Kabila regime.<ref name="AW"/> A week later, AMFI sued Anglo American Corp. for $3 billion for "allegedly interfering with its Congo deal"<ref name="AW"/> over a contract,<ref name="AK">{{cite news |last1=Bodipo-Memba |first1=Alejandro |last2=Block |first2=Robert |date=1998-01-09 |title=America Mineral Fields Sues Anglo-American Over Contract |url=https://www.wsj.com/articles/SB884298408459773000 |newspaper=[[The Wall Street Journal]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410071117/https://www.wsj.com/articles/SB884298408459773000 |archivedate=2020-04-10 }}</ref> filing the lawsuit in a Dallas court.<ref name="BF">{{cite news |date=1998-06-23 |title=Anglo American, American Mineral End Legal Battle, Plan Joint Venture |url=https://www.wsj.com/articles/SB898617172990536500 |newspaper=[[The Wall Street Journal]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410071048/https://www.wsj.com/articles/SB898617172990536500 |archivedate=10 April 2020 |url-status=live }}</ref>
In March 1998,<ref name="AW"/> American Mineral and Anglo American ended their legal and instead began creating a joint venture<ref name="AL">{{cite news |date=1998-06-23 |title=Anglo American, American Mineral End Legal Battle, Plan Joint Venture |url=https://www.wsj.com/articles/SB898617172990536500 |newspaper=[[The Wall Street Journal]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410071048/https://www.wsj.com/articles/SB898617172990536500 |archivedate=2020-04-10 }}</ref> to jointly develop the Kolwezi project, and were still negotiating in July 1998 for the rights from the Congo government.<ref name="AW"/>
AsEarly of 2003on, theit companyoperated hadas projectsa inpenny-stock thecompany Democraticlisted Republicin of[[Vancouver]]<ref Congoname="AW">{{cite andbook Angola.|last=McNish On|first=Jacquie September|date=1998 26,|title=The 2020,Big itScore listed|url=https://archive.org/details/bigscore0000mcni/ on|location=Toronto the|publisher=[[Doubleday AlternativeCanada]] Investment|page=[https://archive.org/details/bigscore0000mcni/page/330/ Market330] in|isbn=0-385-25758-9 London,|accessdate=2020-04-10 a}}</ref> secondaryon listing.the It[[Vancouver alsoStock hadExchange|Vancouver]] aand primary[[Toronto listing on theStock Exchange|Toronto stock exchange]]s, andbut had"lacked justsufficient raisedcapital $15to milliondevelop theremines inon anits openown." In offer1996, withwhen theit moneywas tolisted beon usedthe to[[Toronto "carryStock outExchange]] afor feasibilitythe studyfirst attime, twoThe tailings[[Robertson damsStephens]] atOrphan theFund Kolweziwas copperamong andits cobaltlargest project in the Congoshareholders."<ref name="CDBC">{{cite news |last=BainMorais |first=JulieRichard C. |date=20031998-0908-2609 |title=NewlyFriends listedin minehigh group eyes Africaplaces |url=https://infowebwww.newsbankforbes.com/appsglobal/news1998/document-view?p=AWNB&docref=news0810/132D6FEF9668F428&f=basic0109038a.html |newspapermagazine=[[Business DayForbes (South Africamagazine)|Business DayForbes]] |volume=162 |issue=3 |accessdate=2020-04-10 |archiveurl=https://web.archive.todayorg/20200410074702web/20200410070249/https://infowebwww.newsbankforbes.com/appsglobal/news1998/document-view?p=AWNB&docref=news0810/132D6FEF9668F428&f=basic0109038a.html |archivedate=10 April 2020 |url-status=live04-10 }}</ref>
===Adastra Minerals===
Adastra Minerals in 2004 contracted a "definitive feasibility study" on the DRC Kolwezi cobalt/copper tailings project to a joint venture of [[Murray & Roberts]] and GRD Minproc.<ref name="AA">[https://m.miningweekly.com/article/contract-awarded-for-kolwezi-feasibility-study-2004-08-20/rep_id:3861 "Contract awarded for Kolwezi feasibility study"], ''[[Mining Weekly]]'' (August 20, 2004)</ref> It was still being finalized in the middle of 2005.<ref name="BI">{{cite news |editor-last=Simpkins |editor-first=Edward |date=2005-05-08 |title=Market miscellany |url=https://www.telegraph.co.uk/finance/2915277/Market-miscellany.html |newspaper=[[The Daily Telegraph]] |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410073055/https://www.telegraph.co.uk/finance/2915277/Market-miscellany.html |archivedate=2020-04-10 }}</ref>
In 2004, Adastra Minerals rejected a buyout offer by First Quantum.<ref name="AQCA">{{cite news |last=Wong |first=Craig |date=2004-06-04 |title=Adastra Minerals' Board Dismisses First Quantum's Offer |url=http://www.futuresmag.com/2006/01/23/adastra-minerals-board-dismisses-first-quantums-offer |newspaper=[[Modern Trader]] |agency=[[The Canadian Press]] |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410073904/http://www.futuresmag.com/2006/01/23/adastra-minerals-board-dismisses-first-quantums-offer |archivedate=2020-04-10 }}</ref> In 2005, the [[World Bank]] subsidiary The [[International Finance Corporation]] was considering taking a ten percent stake in a project owned by Adastra Minerals. Adastra had formerly been known as American Mineral Fields.<ref name="CC">[https://www.telegraph.co.uk/finance/2915350/World-Bank-mulls-mine-stake.html "World Bank"], Rosie Murray West, ''[[The Daily Telegraph|The Telegraph]]'' (May 9, 2005)</ref>
Also in 2005, Adastra Minerals was still involved in copper and cobalt, and its "$300m Kolwezi cobalt and copper tailings deposit in Democratic Republic of Congo is attracting a high level of interest from South African financiers." At that point, Adastra's Kolwezi project had secured a 7.5% ownership stake from the International Finance Corporation, and 10% owned by Industrial Development Corporation in South Africa.<ref name="CB">{{cite news |last=Matthews |first=Charlotte |date=2005-09-01 |title=Adastra gets jungle fever as Congo plans flower |url=https://infoweb.newsbank.com/apps/news/document-view?p=AWNB&docref=news/132D70A7A75B7080&f=basic |newspaper=[[Business Day (South Africa)|Business Day]] |accessdate=2020-04-10 |archiveurl=https://archive.today/20200410074303/https://infoweb.newsbank.com/apps/news/document-view?p=AWNB&docref=news/132D70A7A75B7080&f=basic |archivedate=10 April 2020 |url-status=live }}</ref>
In January 2006, [[First Quantum Minerals]] in Canada made a hostile bid<ref name="DD"/> to acquire Adastra Minerals, with the bid rejected<ref name="BB"/> for being too low.<ref name="DD"/> In late April 2006, a second bid was put forward by [[Mwana Africa]], with that bid rejected as well.<ref name="BB"/> By 2006, the company was owner of the Kolwezi project as the as a "Kipushi copper and zinc mine."<ref name="CA">{{cite news |last=Wong |first=Craig |date=2004-06-04 |title=Adastra Minerals' Board Dismisses First Quantum's Offer |url=http://www.futuresmag.com/2006/01/23/adastra-minerals-board-dismisses-first-quantums-offer |newspaper=[[Modern Trader]] |agency=[[The Canadian Press]] |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410073904/http://www.futuresmag.com/2006/01/23/adastra-minerals-board-dismisses-first-quantums-offer |archivedate=2020-04-10 }}</ref> The Kolwezi mine at the time as the "world's largest cobalt and copper surface resource," in the form of waste material from a former mine. It was expected to "produce 5,500 tonnes per year of cobalt and 30,000 tonnes of copper."<ref name="BK">{{cite news |editor-last=Simpkins |editor-first=Edward |date=2006-01-22 |title=Market miscellany |url=https://www.telegraph.co.uk/finance/markets/2930603/Market-miscellany.html |newspaper=[[The Daily Telegraph]] |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410073457/https://www.telegraph.co.uk/finance/markets/2930603/Market-miscellany.html |archivedate=2020-04-10 }}</ref>
After agreeing to a revised bid, in May 2006, First Quantum Minerals acquired Adastra Minerals "in a cash-and-shares deal worth about C$275 million (£135 million)."<ref name="BB"/> First Quantum said it would like Adastra on the London Stock Exchange. At the time, Adastra was based in [[London, England]] and developing mineral assets in Central Africa, particularly mining operations in Zambia, Mauritania and Congo.<ref name="EE"/> After the acquisition, First Quantum again had gained control of the Kolwezi mine, committing to invest a new $600 million in the project.<ref name="AZ">{{cite magazine |last=McClearn |first=Matthew |date=2012-06-05 |title=How First Quantum settled with ENRC for compensation over Congolese mine |url=https://www.canadianbusiness.com/business-strategy/how-first-quantum-settled-with-enrc-for-compensation-over-congolese-mine/ |magazine=[[Canadian Business]] |issn=0008-3100 |volume=85 |issue=10 |accessdate=2020-04-10 |archiveurl=https://web.archive.org/web/20200410064502/https://www.canadianbusiness.com/business-strategy/how-first-quantum-settled-with-enrc-for-compensation-over-congolese-mine/ |archivedate=2020-04-10 }}</ref>
== Notable personnel ==
* [[Jean-Raymond Boulle]], founder; owned 10% stake at time of acquisition by First Quantum.
* Former [[United States President]] [[George H. W. Bush]] was until 2006 named a member of the international advisory board.
==References==
|
