DRC: LICOCO Urges Withdrawal of Mining Titles from SAKIMA-Connected Firms
Having castigated the non-compliance with the prescriptions of the Mining Code by a group of companies having concluded agreements with the mining company SAKIMA, the Congolese League for the Fight against Corruption (LICOCO) demands the outright withdrawal of the mining titles granted to these mining companies.
In a press release published on this subject, LICOCO thus indexes the companies Stone Mining Compagny Sarl, CDMC Sarl, AMUR Sarl and DF SA Mining Congo.
The latter are accused of violating the law relating to the exploitation of mines in the Democratic Republic of Congo (DRC).
“The Congolese League for the Fight against Corruption, LICOCO in acronym, has read, through the press, the Declaration of the companies Stone Mining Company Sarl, CDMC Sarl, AMUR Sarl and DFSA Mining Congo, published on July 27, 2023 and asking the Government to get involved in resolving the dispute between them and the portfolio company SAKIMA SA, ten days after the Joint-Venture Agreement between SAKIMA and Primera Mining Limited, concluded on July 17, 2023.
Indeed, these 4 companies believe that SAKIMA has given Primera Mining Ltd their mining titles and that this may constitute litigation before national and international authorities. “recalls the LICOCO.
However, after analyzing the facts, believes this organization headed by Ernest Mpararo, it turns out that these four companies that signed the Declaration of July 27, 2023 forget that even when signed, the Joint Venture and/or farm-out contracts with SAKIMA are held strict compliance with the provisions of the Mining Code and the mining regulations for the validity of the titles and that, in the contrary case, the Government, through the Ministry of Mines, is entitled to revoke them.
Comply with the law
LICOCO recalls, through its press release, that among the obligations, these four indexed companies had to, among other things, begin negotiations with local communities, sign the social responsibility specifications and respect the related timetables; develop technical and financial feasibility studies for the certification of reserves; consider geological exploration work; and begin construction work on processing plants or facilities if the research results are conclusive and the mines were economically and financially profitable.
“The information in our possession and the situation on the ground sufficiently prove that none of this has been done and that the 4 companies that signed the Declaration of July 27, 2023 have never developed the deposits transferred to them by SAKIMA. for several years.
This is notably the case of DFSA Mining Congo, which has signed a contract with SAKIMA for 19 years. The question this raises is: What has actually been achieved since the signing of this contract? Currently, it happens that all the exploitation perimeters that had been transferred to them by SAKIMA are either inactive or dormant, or occupied by artisanal miners with all the consequences that this represents for the sustainable development of the region, between others : non-compliance with socio-economic and environmental standards during exploitation work by small-scale operators. “, can we read in the press release.
LICOCO indicates that in view of this sad reality and the lessons learned, the Government should only grant Exploitation Permits to companies that demonstrate the technical and financial capacity to build industrial mines or should, otherwise , forfeit their holders of all rights relating thereto, in accordance with the provisions of Articles 196, 197, 198, 199, 286 of the Mining Code and 390 of the Mining Regulations.
Recommendations
Consequently, LICOCO supports the Government’s initiative to withdraw the mining titles allocated to these 4 signatory companies of the declaration of July 27, 2023, but invites it to do so through a Commission set up by the Ministry of Mines. , in order to assess the contract of each of the 4 companies and officially notify them of the withdrawal of the mining titles in order to prevent unnecessary litigation.
The Congolese Anti-Corruption League also supports the Government’s initiative to grant these mining titles to one or more other companies with the technical and financial capacity to build industrial mines in order to contribute to the sustainable development of the region of Kivu which remains among the poorest and most unstable in the country.
LICOCO asks the Civil Society Organizations of the DRC to support this initiative of the Government of the DRC to obtain the forfeiture of the mining titles to these 4 Companies which have not respected their environmental and social commitments, in accordance with the provisions of the Mining Code .
Finally, this organization asks the Government and particularly the Ministry of Mines to involve the actors of Civil Society in this process of forfeiture of mining titles to these 4 companies in order to prevent any act of corruption which could enamel this process that the NGO wants to be inclusive and participatory, alongside other stakeholders and partners.
