The state miner of the Democratic Republic of Congo (DRC) is intensifying efforts to maximize returns from its copper and cobalt ventures. It aims to negotiate for increased ownership stakes across various ventures to enhance its influence over the management of major mines.
Additionally, Gecamines plans to utilize its existing shareholding in mines to secure off-take contracts, enabling independent trading of copper and cobalt.
Guy Robert Lukama, Chairman of Gecamines, disclosed the intention to incorporate more local executives into joint venture boards to wield greater influence over asset management. This strategic move reflects Gecamines’ ambition to rectify past agreements deemed disadvantageous, leveraging the global demand surge for minerals vital to renewable energy initiatives.
“We aim to rectify past errors where we relinquished significant assets to external parties solely to attract foreign investment,” stated Lukama, acknowledging Gecamines’ diminished stature from its peak production levels.
Chinese mining firms have played a pivotal role in the DRC’s cobalt production, crucial for electric vehicle and mobile phone batteries, while the nation remains a significant copper producer.
President Felix Tshisekedi’s administration has criticized deals favoring China, leading to renegotiations and additional funding requirements for infrastructure projects.
Gecamines seeks representation on mining boards to ensure accountability, transparency, and compliance with local regulations. Lukama expressed concern over mines’ indebtedness hindering expansion plans, suggesting inadequate oversight.
Questions arose over partners’ reported losses amid cobalt price declines, contrasting with sustained copper prices. Lukama emphasized the need for equitable partnership and a more active role in governance.
Recent agreements with CMOC Group granted Gecamines rights to acquire a share of copper and cobalt production from Tenke Fungurume Mining, alongside substantial settlements and dividends. Gecamines aims to extend similar trading arrangements with partners like Glencore and Zijin Mining.
Lukama questioned the necessity for partners to retain full off-take rights post-debt repayment, urging reviews of existing terms to align with mutual interests and community development goals.
The 2018 revisions to the mining code empowered Gecamines to reassess contract terms and increase state participation thresholds, reflecting DRC’s history of exerting pressure on mining firms for greater equity and compliance with fiscal obligations.
