DRC: copper production estimated at 1.601 million tonnes in 2020, a record never achieved
According to figures communicated by the Economic Conjuncture Committee (CCE), the Democratic Republic of the Congo produced 1,601,218 tonnes of copper in 2020. This is a record never reached so far. Here is the full report of the CCE.
The Prime Minister, outgoing Head of Government, Ilunga Ilunkamba, chaired this Wednesday, April 7, 2021 at the Prime Minister’s office, the weekly meeting of the Economic Conjuncture Committee to continue monitoring the socio-economic situation of the country. This working session focused on the economic situation report, the evolution of the various parameters of the foreign exchange market, goods and services, as well as the evolution of the mining sector from the week of March 29 to April 2, 2021.
The economic situation of the week is marked by the publication of the Africa’s Pulse report by the World Bank (WB), indicating that economic growth in Sub-Saharan Africa should resume to settle between 2.3% and 3.4% in 2021 against 2% in 2020. These results are consecutive to the resumption of activities in the agricultural sector, as well as the efforts of the various Governments to contain the spread of the coronavirus pandemic.
The national context is marked in particular by:
-the estimate of economic growth, based on production at the end of December 2020, by the Commission for Statistical Studies and National Accounts. This estimate indicates a slowdown in economic activity on the back of measures to contain the spread of Covid-19.
-The growth of the real Gross Domestic Product (GDP) would stand at 1.7% against 4.4% observed in 2019. The recorded growth is mainly explained by the performance of the extraction branch following the measures of confinement of workers in the sites extraction and the good performance of world prices of mining products.
-The production of Cobalt has increased significantly from 77,964 tonnes to 86,591 tonnes during this period, while the production of copper has greatly improved from 1,420,386 tonnes in 2019 to 1,601,218 tonnes in 2020. The Real GDP excluding mines posted a decline of 1.3% in 2020 against an increase of 5.8% a year earlier.
The main economic and health information for the week under review are characterized by:
-the approval on March 30 by the World Bank of a financing of 500 million US dollars for the Multisectoral Development and Urban Resilience project in Kinshasa.
-the official launch on March 31 of the new subsidiary of Générale des Carrières et des Mines (Gécamines), called the Entreprise Générale du cobalt. It aims to establish the state monopoly on the purchase, processing and sale of artisanal cobalt, the production of which represents approximately 20% of the total cobalt mined in the Democratic Republic of Congo.
-The adoption in second reading on April 2 by the Senate, of the bill authorizing the ratification by the DRC of the agreement establishing the African Continental Free Trade Area.
-the announcement on April 2 of a financing of 72 million American dollars from the African Development Bank (ADB) for the rehabilitation of the road axis of the national n ° 1 in its Kinshasa-kikwit section.
In terms of health, the members of the CCE noted an increase of 342 cases of covid-19 patients, and 745 deaths, according to statistics published by the Multisectoral Committee of Response against Covid-19.
Regarding the main economic indicators, the Economic Conjuncture Committee provides the following information: in the real sector, a deceleration in the rate of formation of domestic prices during the week of March 29 to April 2, 2021.
-The weekly national inflation rate is located at 0.089% against 0.096% the previous week. The inflation of the week is the result of the rise in certain basic necessities. National inflation is set at 1.119% year-to-date and 15.146% year-on-year. All things considered, at the end of 2021, the inflation rate could stand at 4.552% against a medium-term objective of 7%.
In the external sector, there was relative stability in the indicative and an appreciation of 0.36% parallel to the Congolese franc against the dollar on April 2 compared to March 26. For 1 US dollar, the exchange rate is fixed at 1982.42 Congolese franc in the indicative, 2017, 67 Congolese franc at the parallel after respectively 1982.70 Congolese franc and 2025 Congolese franc a week earlier. A slight decrease of 0.01% in foreign exchange reserves as of March 29 of the current year.
Regarding the mining sector, it was noted that the week was marked by the drop in all mining products, except manganese. It was also informed a drop in the mining royalty which fell from 17,278.22.25 US dollars last week to 16,462,429.47 US dollars this week. It should also be noted that the Minister of Mines held a workshop in Lubumbashi on three subjects, namely: The moratorium on the export of copper and cobalt concentrate, the signing of specifications required from holders of mining rights and review of the procedure manual for the endowment of 0.3% of the annual turnover for community development.
The Minister members of the CCE, the Vice-Governor of the BCC, the experts of the FEC and the ANEP took part in this traditional meeting of the Economic Conjuncture Committee.
