The Board Directors of Gecamines has asked the Democratic Republic of Congo (DRC) government, the miner’s sole shareholder, for permission to review its partnership model with foreign investors.
In a press release issued yesterday The Board of directors said the partnerships that Gecamines had with other organisations had not produced the desired output over the years, as they needed the mining company to singlehandedly carry the financial burden to be sustained.
“Finding that the overwhelming majority of partnerships which management has been entrusted to external partners by Gécamines present negative results, do not generate any dividends, and thus do not contribute to national development to the extent expected, Gécamines initiated, between 2015 and 2017, a series of audits of its partnerships with the help of leading international firms. The initial results of these audits reveal that they were managed at the expense of Gécamines, often through unacceptable accounting and management practices. Gécamines cannot content itself with such a situation for longer.”
In 2018, Gécamines therefore intends to initiate a frank discussion with its partners and, as needed, demand a clarification of the agreements in place. In the future, Gécamines intends to break with past schemes that do not fulfill their initial objectives, contrary to the content of the studies produced at the time,” stated the board.
Gécamines would follow a subsidiarity principle, which would entail only forming partnerships for the operations that require the contribution of third parties and that will allow it to maximise industrial or financial return, said the Board.
Presently, Gécamines is attentively following the discussions currently taking place in Parliament on the reform of the Mining Code of 2002, whose stated objective is to rebalance the sharing system of the mineral wealth of the DRC, one of the most advantageous in the world for investors.
“As a recent report of a financial backer in effect noted, the boom of the natural resources sector from 2007 benefited more to foreign investors than to the State and local producers, the choice to have recourse to multinationals operating in the formal sector, thus not having generated the economic outcomes expected. It is now clear that the generous provisions of the Mining Code of 2002 do not allow the DRC to fully benefit from its abundant natural resources,” lamented the board.