DRC Govt Advocates for Involvement in Kamoa Copper Buyer Selection
During a recent Council of Ministers meeting in Kinshasa, the Minister of Mines emphasized the necessity for the Congolese government to participate in the selection of buyers for Kamoa Copper.
This mining company, located 25 kilometers west of Kolwezi in the Mutshatsha territory of Lualaba province, is recognized by international mining consultant Wood Mackenzie as the largest undeveloped high-grade copper discovery in the world.
The Democratic Republic of Congo (DRC) is Africa’s leading copper producer and ranks fifth globally, contributing 5% of total world production.
The Kamoa mine is notable for its extensive stratiform copper deposit, located near the surface within the Central African copper belt, making it a valuable asset for the country.
The Congolese government, which holds a 20% stake in Kamoa Copper, seeks to engage in the buyer selection process to enhance the profitability of its investments and ensure the integrity of the bidding process.
“The State must be involved to guarantee the credibility of the tender process and to ensure that any future buyer selection allows Kamoa Copper to receive competitive offers and secure the best possible conditions for selling its products,” stated the minutes from the Council of Ministers meeting held on Friday, October 4.
The DRC government derives revenue from the Kamoa mine through various channels, including dividends from its equity stake, royalties on copper sales, and taxes on turnover or profits.
However, the government has raised concerns about the significant risks associated with insufficient control over these revenues.
This lack of oversight could impact both the turnover achieved and the expenses incurred by the companies, ultimately affecting their contributions to the state budget through taxes and duties. Hence, the need for government involvement in buyer selection is crucial.
Kamoa Copper has a capital of $500,000. The company commenced copper concentrate production in mid-2021 and began commercial production two months later. The planned gradual expansion aims to position Kamoa as the second-largest copper complex in the world.
