DRC: Félix Tshisekedi’s stops interventionism by Minister of Finance in Tenke Fungurume’s reserve assessment file

The presidency of the Democratic Republic of the Congo, through the director of cabinet Guylain Nyembo, acting as president of the ad hoc committee set up by the Head of State with the aim of evaluating the partnership between CMOC (Chinan Molybdenum Co ) and Gécamines through the Tenke Fungurume joint venture, in a correspondence dated January 3, 2022 addressed to the CEO of CMOC, made an update and at the same time reframed the Minister of Finance, Nicolas Kazadi, who interfered in this matter.

“It is with regret and consternation that I note after having read the letter sent to you by the Minister of Finance of the Democratic Republic of Cogo dated December 24, 2021 which, in addition to shortening the process already initiated , is not only an affront to the resolutions taken before the President of the Democratic Republic of the Congo, in Kinshasa, on November 10, 2021; but also demonstrates your clear intention to encourage TFM to shirk its contractual obligations vis-à-vis Gécamines SA ”, wrote Guylain Nyembo in his correspondence to the CEO of CMOC.

And to the DIRCAB of the President of the Republic to specify: “the ad hoc committee that I chair and set up by the President of the State of the Democratic Republic of the Congo, has not at this stage been aware of any representation mandate issued , by his care, to the Minister of Finance, who binds us in copy and who cannot therefore in any way interfere in this process ”.

It should be noted that this ad hoc committee was set up to shed light on the criticisms made to CMOC for deliberately wanting to conceal and underestimate the proven probable and recoverable reserves of TFM. This would deprive Gécamines of its rights and the Congolese state of significant revenue.

Clearly, the Minister of Finance is criticized in particular for “interfering” in this file while it is being dealt with within an ad hoc committee set up by the Head of State himself.

The interference of the national financier was made in particular by his letter of December 24, 2021 with as subject “CMOC-RDC Partnership” and addressed directly to Mr Sun Ruiwen, CEO of CMOC.

In this correspondence, Nicolas Kazadi notes: “With regard to the dispute relating to the increase in TFM’s reserves, we will ensure that it is dealt with in a fair and impartial manner, in full transparency. As soon as possible, the two parties will jointly seize a third international institution, to verify, in accordance with the agreement and international practices, the increase in TFM’s reserves ”.

Recall that through a trip to Katanga space in May 2021, the President of the Republic had expressed the wish to revisit certain partnerships, particularly in the mining sector, so that they are effectively win-win.

“I am tired of seeing foreigners come here with empty pockets and leave as billionaires, while we remain poor,” President Félix Tshisekedi had launched during a meeting in Kolwezi, in the province of Lualaba. A region that is home to immense mineral wealth: copper, cobalt, uranium and radium. The DRC holds 80% of the world’s cobalt reserves. An essential raw material, in particular for the manufacture of electric batteries.

“It is time for the country to readjust its contracts with our friends the investors to seal win-win partnerships,” added Félix Tshisekedi before accusing, “it is also our fault. Some of our compatriots had badly negotiated the contracts. Worse, the little that goes to the State, they put it in their own pockets, “said the Head of State.

Construction of Teke Fungurume began in late 2006 and the first copper cathode was produced in 2009. In 2006, the company’s shareholding structure includes Freeport McMoRan at 56%, Lundin Holdings at 24% and Gécamines at 20%. In 2016, Freeport McMoRan sold its stock shares to China Molybdenum for $ 2.65 billion. In 2018, China Molybdenum Co Ltd bought the shares of Lundin Holding and became the main shareholder with 80% of the shares and Gécamines kept 20%.