Mines in the DRC: according to the NGO Afrewatch, the country loses on the "Chinese contracts" of 2008

A copper mine in the south-east of the DRC (illustrative image).

AFP / GWENN DUBOURTHOUMIEU

Text by: RFI Follow

5 mins

What happened to the money from Chinese contracts in the DRC?

According to a Congolese NGO, Afrewatch, the state would be largely the loser in what had been described in 2008 as “

 contracts of the century 

”.

A consortium of Chinese companies was to grant $ 6 billion in loans to the country and enjoyed privileged access to its mineral resources.

Afrewatch looked into this “

mine against infrastructure

 ”

convention 

.

Publicity

Read more

Afrewatch spent five months investigating Sicomines and

the

2008

Sino-Congolese convention

, which led to the creation of this

joint venture

.

China was to grant more than 6 billion loans to the DRC: 3.2 billion dollars to create Sicomines and 3 billion more to build the necessary infrastructure for the country.

In exchange, Beijing was to obtain full tax exemption and nearly 70% of the stake in their

joint venture

.

Sicomines was to repay these loans with the profits made on a copper exploitation with reserves estimated between 7 and 10 million tonnes, depending on the period.

Only half of the loan has been paid

13 years later, for Afrewatch, China and the DRC have achieved less than 50% of their commitments and the Congolese side is largely losing.

Not only, less than half of the money planned was actually loaned by China, that is to say nearly 3 billion.

But Sicomines did not even receive the full amount.

There is $ 800 million whose use remains unjustified.

Still according to the NGO, while little infrastructure has been built, copper production has indeed started since 2015. This is one of the reasons why Afrewatch is asking for an audit and the revision of the Sino-convention. Congolese.

Emmanuel Umpula (Afrewatch) details the different points that pose a problem on the Sicomines

Sonia rolley

Rarely, two Sicomines officials were present at the press conference presenting the Afrewatch report.

They promised to address all of the NGO's concerns, but not had enough time before the report came out.

One of the two nevertheless assured that President Tshisekedi had appreciated the way in which Sicomines was managed and already assured that the Chinese contracts would not be renegotiated.

This public statement was temporized by the presidency.

#RDC #China: read the @afrewatch report on the Sino-Congolese convention.

The NGO's fear is that in 2034, the DRC will find itself in debt, with little infrastructure and of poor quality.

@itierdc must also publish its evaluation https://t.co/MpFq1WG1uI

- Sonia Rolley (@soniarolley) June 18, 2021

According to Michel Eboma, the senior advisor in charge of mines interviewed by RFI, this company cannot speak on behalf of the head of the State. A joint meeting of the presidency, the Minister of Portfolio and the Minister of Mines should be held, specifies- he, to discuss all of these issues.

►Also read: The Afrewatch report on the Sino-Congolese Mines Convention

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