President Tshisekedi Oversees Renegotiation of Mining Contract with Chinese Group
In Kinshasa this Thursday, President Félix Tshisekedi led the signing of the renegotiated mining contract with the Chinese Enterprises Group (GEC), marking the fifth amendment to the collaboration agreement initiated in April 2008 for mining and infrastructure projects in the Democratic Republic of Congo (DRC).
The contract amendment aims to establish a mutually beneficial partnership, including a significant increase in infrastructure investment from USD 3.2 billion to USD 7 billion, with plans for constructing approximately 5,000 km of roads, according to Alexis Gisaro, Minister of State for Infrastructure and Public Works.
Moreover, the agreement entails the DRC’s participation in the capital of Sino-Congolaise Hydroélectrique (SICOHYDRO) of Busanga, with a 60-40 split between GEC and the DRC, as well as a revised distribution of shares in Sino-Congolaise des Mines (SICOMINES), shifting to 68% and 32%, respectively, until full loan repayment related to the Sino-Congolese Cooperation Project.
Additionally, Générale des Carrières et des Mines (GECAMINES) will now handle the sale of 32% of SICOMINES production starting this year, as stated by André Wameso, Deputy Chief of Staff to the President.
The signing ceremony involved various Congolese ministries, including Infrastructure and Public Works, Mines, Budget, and Finance, alongside representatives from China Railway Group Limited on behalf of GEC.
The initial contract, established 16 years ago, granted cobalt and copper deposits to GEC in exchange for infrastructure construction, leading to the formation of the Congolese-Chinese company SICOMINES.
However, a 2023 study by the General Inspectorate of Finance (IGF) highlighted a financial imbalance in the agreement, prompting President Tshisekedi’s call for its revision, which he also raised during discussions with Chinese President Xi Jinping in May 2023.
