DRC government withdraws USD 25 million from the Mining Fund to meet public spending in December 2020
To meet the heavy spending at the end of the year, the Ilunkamba government squeezed CDF 50.0 billion (about USD 25 million) from the Mining Fund’s resources, according to state financial operations data for the month of December 2020.
Indeed, public spending peaked at CDF 969.8 billion in December 2020 against resources of around CDF 883.5 billion, resulting in a deficit of CDF 86.3 billion, according to the Central Bank.
According to the revised Mining Code, in its article 242 relating to the distribution of the mining royalty, “The mining royalty is paid by the holder of the mining license at the rate of: – 50% acquired from the central power; – 25% paid on an account designated by the Administration of the province where the project is located; – 15% on an account designated by the decentralized territorial entity within whose jurisdiction the operation takes place; – 10% to the Mining Fund for future generations ”.
In the 2020 Budget, the quota planned for the account of the Mining Fund for future generations was 59.7 billion FC. This pot is normally intended to be saved for future generations.
The 2019 financial statements of the Central Bank of Congo revealed that at the end of December 2019, the Mining Fund for Future Generations was provided with 18.096 million USD. This sum is lodged with Citibank for 13.274 million USD and at the BIS (Bank for International Settlements) for 4.811 million USD, according to the 2019 financial statements of the BCC.
