UPDATE 1-IMF sees rapid growth in Congo minerals output

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By Joe Bavier

KINSHASA, June 7 (Reuters) - Democratic Republic of Congo's copper and cobalt production should rise rapidly in the coming years as it reaps the benefit of private investment in its mining sector, the International Monetary Fund said on Thursday.

Following the first free elections in four decades last year and a return of stability to the southeastern Katanga province, the central African country's mineral heartland, investment by major mining companies has boomed over the past few years.

Mineral production -- which also includes gold and diamonds -- will rise as projects to rehabilitate long-abandoned mines and open new ones begin to go online early next year, Cyrille Briancon, head of the IMF's Africa division, said in Kinshasa.

"Beginning in early 2008, Congo should see growth in production if these projects advance as planned, and it should continue to grow fairly quickly through 2012 and 2013," he said.

"We should reach levels that this country has not seen for a very long time."

Once a world leader in mineral production, Congo exported more than 440,000 tonnes of copper in 1989 before a steady decline due to years of mismanagement followed by a 1998-2003 war crippled exports.

Companies operating or prospecting in Congo's fast-expanding mining sector include the world's largest diversified miner BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz) and the world's third-biggest gold producer AngloGold (ANGJ.J: Quote, Profile, Research, Stock Buzz) Ashanti.