DRC: Gécamines-Société minière du Katanga contract, a misinterpretation fuels intoxication
Crazy speculation is observed on the web around a controversial interpretation of the nature of the contract between Gécamines and the Société minière du Katanga.
At the heart of the media boom: the widely circulated rumor accusing Gécamines of having sold a copper and cobalt mine at a low price to the Société minière du Katanga -Somika-, for 23 years of operation. A transaction that would have been negotiated for a modest sum of 10 million US dollars.
That these allegations are false, retort experts close to Gécamines. They take as proof the official contract between the public operator of copper and cobalt and the Société minière du Katanga (Somika).
According to their explanations, the error of interpretation of the contract in force is due to a serious confusion between the act carried out within the framework of this contract namely a lease which differs from a sale as widespread.
“ It is therefore a file badly read, badly interpreted, badly understood and badly explained. Because neither a prosecution nor a court, a media has targeted and publicly condemned, the “Honorary President of the Republic, Joseph Kabila”, a leader in post at Gécamines, in particular the PCA “Albert Yuma”, and a former Director General of this public company, Jacques Kamenga, named and accused in this supposed operation of reduced sale of this mine ”, they underline.
In their opinion, this rather complex mining file was treated and explained to the public like the passionate comments of a football match where the supporters avail themselves of an expertise superior to that of the technical staff or the athletes.
” It is not normal to speak of a transfer when it is about a lease, ” they argue.
But for further clarification, they wonder if the country can sell a mine at 10 million dollars when it is worth 3.5 billion dollars, specifying that such allegations make laugh all the miners.
They explain that the 10 million dollars mentioned was only a down payment on the doorstep and not the price of an alleged sale of a mine.
Some independent experts carry out a technical reframing for the sole concern of ” bringing out both the media and the abused public of an incomplete interpretation on the file coming from an improvised expert journalist on mining issues “.
What can be learned from the PE 2590 leasing contract on Lupoto?
The PE 2590 leasing contract on Lupoto was initially signed on May 21, 2015 between Gécamines and Iverland, but terminated to make way for the one concluded between Gécamines and Somika on November 30, 2017.
According to the prescriptions of this agreement, it is indeed a lease, which is a lease of rights, and not an assignment or sale.
This contract provides for four main rights for Gécamines, namely:
- the payment of an initial payment of 10 million USD which is a down payment on the estimated reserves;
- the payment of an additional step on additional reserves;
- the payment of the initial royalties of 2.5% of the estimated turnover;
- the payment of additional royalties of 2.5% of the positive differential between the estimated turnover and the actual turnover.
After analysis, the experts familiar with the matter are unanimous that it is therefore incorrect to state that the duration of the contract is 23 years.
Rather, the contract provides that the resulting rights will remain in force until the earliest date, that is to say:
First : between the date 23 years from the date of signature;
Second : to the exhaustion of the deposits;
Third : until the date on which the permit can no longer be renewed.
Quarto : until the date on which the contract is terminated or terminated.
Quinto : it should be noted that Gécamines remains “owner” of the leased deposits given that the transaction concluded between Gécamines and Somika is only a lease of mining rights.
source: Zoom Eco
