Connect with us

Energy & Critical Metals

Congo seeks to raise stake in cobalt and copper JV with China to 70%

The country’s plans come ahead of its talks to restructure a $6bn infrastructure-for-minerals agreement.
The post Congo seeks to raise stake in cobalt…

Share this article:



This article was originally published by Mining Technology

The Democratic Republic of Congo is planning to increase its stake in a copper and cobalt joint venture (JV) with Chinese companies for greater control over its resources, reported Reuters.

The Sino Congolaise des Mines (Sicomines) JV includes Congolese state miner Gecamines and is majority-owned by Chinese companies.

The aim is to raise the stake in the JV from 32% to 70%.

Congo’s plans to take more control of the JV’s management are driven by concerns that the current arrangement provides minimal gains to the country, according to a document seen by the news agency.

The country’s plans come soon before discussions to restructure a $6bn infrastructure-for-minerals agreement.

Congo President Felix Tshisekedi has given a directive to proceed with the discussions after several Congolese stakeholders ‘consolidated their position’ on the deal signed in 2008.

According to the country, the deal makes it difficult to have control over the venture’s operations, resultantly draining resources and revenue from the country.

In March, President Tshisekedi ordered the establishment of a commission to bring negotiating positions to Congolese institutions that oversee the deal’s implementation.

This commission comprised government representatives and state auditors.

It also consisted of the General Inspection of Finance (IGF), the Agency for Supervision, Coordination and Monitoring of Collaboration Agreements reached between Congo and private partners, Gecamines and the civil society.

Two commission members told Reuters that the conclusions arrived within the document will be the basis on which Congo will proceed with talks with the Chinese companies.

In accordance with the commission, the country is seeking a greater share in Sicomines because it had not considered the $90bn reserves that Gecamines brought to the deal.

In addition, Congo should consider a 60% holding in Sicomines and a 10% non-dilutable stake for the state.

The remaining 30% will be held by Chinese companies, the commission noted.

Sinohydro and China Railway Group agreed to construct roads and hospitals in lieu of a 68% interest in JV.

The post Congo seeks to raise stake in cobalt and copper JV with China to 70% appeared first on Mining Technology.

Share this article:

Energy & Critical Metals

Commentators Calling for a 50% Plunge in Lithium Prices in 2023 Were Full of Sh-… somewhat off the mark

Market watchers say lithium prices have dropped catastrophically since the start of the year. ASX producers tell a different story. … Read More
The post…

Share this article:

Continue Reading

Gold & Special Minerals Fund Holdings Monthly Update – May 2023 and Attribution Analysis

This report details the most recent portfolio holdings for Gold & Precious Metal Managed Funds…

Share this article:

Continue Reading
Energy & Critical Metals

BHP and Microsoft collaborate on AI in copper extraction

BHP Group estimates the world needs to double the copper supply in the next 30 years to keep pace with green technologies.
The post BHP and Microsoft…

Share this article:

Continue Reading