• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Thursday, June 5, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

DRC moves for majority stake in joint minerals venture with China

DRC

The Matters Press by The Matters Press
May 25, 2023
Reading Time: 3 mins read
0
Private sector in Mining sector will accelerate development

The Democratic Republic of Congo aims to boost its stake in a cobalt and copper joint venture with Chinese firms to 70 percent from 32 percent, on concerns the deal gives away too much of Congo’s resources with little benefit to the country.

RELATED POSTS

PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF

FCT ground rent!: Check your name if you own property

Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

The plan to boost Congo’s stake and have greater control in managing the Sicomines venture – currently dominated by the Chinese firms – was detailed in a document seen by Reuters, that outlined the country’s demands ahead of talks to overhaul a $6 billion infrastructure-for-minerals agreement.

President Felix Tshisekedi who is set to visit China instructed his government on May 19 to move ahead with the talks after Congolese stakeholders “consolidated their position” on the 2008 deal.

The lopsided pact, Congo says, leaves it little means to control the operations of the venture as its resources and revenue that are leaving the country.

He ordered the creation of an ad hoc commission in March to harmonise the negotiating positions of the Congolese institutions in charge of supervising the execution of the deal.

The commission included representatives of the presidency, the government, state auditor, the General Inspection of Finance (IGF), the Agency for Supervision, Coordination and Monitoring of Collaboration Agreements signed between the Democratic Republic of Congo and private partners, state miner Gecamines and civil society.

Two members of the commission, who were not authorised to speak publicly, confirmed the authenticity of the document and the conclusions not yet reported before.

The sources said the conclusions would serve as the basis for Congo’s talks with the Chinese companies.

The DRC government and its presidency did not respond to requests for comment.

The commission said Congo should seek a greater share in Sicomines because the 2008 agreement did not take account of an estimated $90.9 billion worth of reserves that Gecamines brought to the deal, according to the document seen by Reuters.

Chinese companies Power Construction Corporation of China, also known as Sinohydro, and China Railway Group Limited did not respond to requests for comment.

Sinohydro Corp and China Railway Group Limited had agreed to build roads and hospitals in exchange for a 68 percent stake in Sicomines, the cobalt and copper joint venture with Congo’s state mining company Gecamines.

Congo is the world’s largest producer of battery material cobalt and a major copper producer.

The commission said Congo should seek a 60 percent stake in Sicomines for Gecamines and its subsidiary, a non-dilutable 10 percentt stake for the state, and 30 percent for the Chinese companies, to make the joint venture deal fairer for Congo.

It said the amount earmarked in the previous deal to finance infrastructure, around $3 billion including interests, was insufficient compared with the value of mineral reserves given up by Gecamines.

“We estimated that the loan envelope for infrastructure should increase from $3 billion to $6 billion,” one of the sources said.

In the initial deal, $3 billion had been earmarked for developing the Sicomines joint venture, and another $3 billion for infrastructure in Congo.

In the renegotiation talks, compensation would be brought up, the source said.

“We are going to ask for a lump sum compensation of $2 billion, among other things because Sicomines sold the minerals at half price to the Chinese companies well below the market price,” the source said, adding that the fine will be for all damages Congo has suffered.

“It is estimated that 90 percent of the Congo’s mining exports go to China, but its contribution to GDP does not exceed 30 percent,” said Jean-Pierre Okenda, director of extractive industries for Resource Matters, an NGO which is calling for greater transparency in the negotiations.

“Tshisekedi is expected to raise the issues during his trip to Beijing. However, the real negotiations with the Chinese side will only start when the president returns,” one of the sources told Reuters.

The EastAfrican

Tags: DRCMineral
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Energy

PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF

June 4, 2025
Property owners besiege FCT office to pay ground rent
Economy/Technology

FCT ground rent!: Check your name if you own property

June 3, 2025
News

Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

June 3, 2025
Economic implications of Niger coup to Nigeria, ECOWAS
Economy/Technology

IMPI urges media to consider national interest in reporting security challenges

June 3, 2025
Tinubu steering Nigeria away from Venezuela-like tragedy – IMPI
News

Malami’s opposition to Tinubu’s endorsement self-indicting – TDF

June 3, 2025
President Tinubu outlines new economic, monetary, foreign policies
Economy/Technology

CUPP goofs over President Tinubu’s 2027 endorsement by governors

June 2, 2025
Next Post
CIIN president tasks Insurance directors on manpower development

Insurers, unit trusts big winners in Uganda tax proposals

Nigeria gets AfDB’s $14m as member of ATI

AfDB highlights critical contributions to wellbeing of continent

Recommended Stories

Tinubu inaugurates 45 ministers, issues marching order

Tinubu inaugurates 45 ministers, issues marching order

August 21, 2023
Russia, Saudi Arabia renew oil production cut

Russia, Saudi Arabia renew oil production cut

December 2, 2018
Nigeria suspends mining in Zamfara

Nigeria suspends mining in Zamfara

April 9, 2019

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF
  • FCT ground rent!: Check your name if you own property
  • Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us