IMF tasks Félix Tshisekedi to publish mining contracts signed by SOKIMO and MIBA

The mining contracts concerned have not been the subject of any call for tenders and are never published on the website of the Ministry of Mines. Worse, the interests of the DRC are sold off, in these deals yet concluded under the era of President Félix Tshisekedi according to NGOs, By asking for the publication of these contracts, the IMF is actually saying the DRC cannot sell off its mining assets likely to bring it billions of dollars while at the same time begging for financial support. from international financial institutions.

The Democratic Republic of the Congo must fulfill three major prerequisites before hoping for success in the next negotiations with the IMF, scheduled for as early as October 2020, for the conclusion of a formal agreement for a three-year economic program from 2021.

Among these prerequisites, there is in particular that relating to transparency in the mining sector. Thus, the IMF expressly asks the Congolese government to publish the mining contracts of SOKIMO and MIBA and to put in place the roadmap within the framework of the IIEEE.

For SOKIMO, the contract referred to is the memorandum of understanding signed in January 2020 with the Canadian company AJN RESSOURCES INC relating to the transfer of 25 mining permits from this state portfolio company for the modest sum of $ 20 million. Canadian dollar, or approximately US $ 15.2 million.

The disposals in question concern: – The 10% of SOKIMO’s shares in KIBALIGOLD – The 30% in KODO; – The 35% in GIRO GOLDFIELDS; – The 35% in WANGA; – The 30% in NIZI; – The 30% in KIBALI SUD.

The problem is that this transaction was done in violation of the law but also sold off mining assets of SOKIMO for crumbs, according to the NGOs who protested against this deal.

“We can not understand that state mining titles, equivalent to more than 10 billion USD are attributed, by mutual agreement, to private individuals for a total value of 20 million USD, in flagrant violation of the law”, s ‘Ernest Mpararo, president of LICOCO, indignant on February 22, during a press briefing by the Collective “The Congo is not for sale” to denounce the transfer of SOKIMO’s mining permits.

In addition to NGOs, even SOKIMO’s partner in Kibali Gold disapproved of the transaction with AJN RESOURCES INC, which remains a minor player in mining.

“Barrick Gold Corporation’s attention has been drawn to media reports that the mining company of Kilo-Moto SA (SOKIMO) has signed a memorandum of understanding with AJN Resources Inc. to sell its stake to the latter. of 10% in the company Kibali Gold Mines SA. Barrick would like to clarify that Sokimo is bound by contract to Barrick and Anglo Gold Ashanti, its joint venture partner, and therefore cannot sell or transfer its shares in Kibali Gold Mines SA, owner of the gold mine. of Kibali, without their approval. This approval has not been requested and will not be granted ”; Barrick Gold Corporation noted in a press release dated February 20.

According to anti-corruption activists, the Canadian firm does not even have the financial resources to acquire the mining permits from SOKIMO. “Do you know why we cede these mining permits from theSOKIMO? It is to allow AJN to go and raise 20 million dollars. AJN does not yet have the money, we cede the titles to him, take the shares and he goes to the international market, he seeks investors to come and exploit, he does not even have a franc “, maintained E. Mpararo of LICOCO.

Despite all these protests, the Minister of Portfolio, Kuete Nyimi, defended this deal at the 36th meeting of the Council of Ministers in June 2020, asking the government to validate the transaction between SOKIMO and AJN RESSOURCES. The file was transferred to the Presidency of the Republic for a final decision that has never been taken to date.

With regard to MIBA, this is the over-the-counter contract signed on February 12 with the Romanian firm AM Developpements International relating to the relaunch of mining by MIBA, in accordance with the prescriptions of the Mining Code in this regard. which concerns the transparency of contracts.

This contract remains a mystery because the government has never published it to date. Mining legislation in the Democratic Republic of the Congo requires the government to publish any mining contract 60 days after it is signed.

In an open letter dated May 13, 2020, the Coalition for the Governance of Public Enterprises in the Extractive Sector (COGEP) asked the Prime Minister to publish this joint venture in accordance with the requirements of the Mining Code with regard to the transparency of contracts. Since then, it has been radio silence. The government kept this deal a secret.

“COGEP believes that refraining from publishing the said contract promotes opaque management in all public enterprises, while long criticized by civil society organizations. This is why we are asking for your involvement so that the agreement signed between Miba and the Romanian firm AM Developpements International is made public in order to promote transparent management of the companies of the State Portfolio in accordance with the legal prescriptions on the transparency ”, wrote COGEP in its correspondence to Sylvestre Ilunga Ilunkamba.

It therefore remains for the President of the Republic to exercise an option in relation to these controversial mining contracts. Transparency remains a major requirement for cooperation with the Bretton Woods institutions. the DRC will not be able to escape it.

Recall that in 2012, the IMF suspended the Economic Program with the Congolese government following the opacity in certain mining contracts and the selling off of Gécamines mining assets.