DRC: MMG promises to launch arbitration proceedings against GECAMINES

MMG, a mining company registered in Hong Kong, announced a few hours ago its intention to open arbitration proceedings before the International Chamber of Commerce in Paris and Geneva against GECAMINES, a mining company belonging to Congolese state.

GECAMINES is accused by the Chinese side of violating the rights of the latter on several mining concessions in the former province of Katanga.

Among the grievances formulated against GECAMINES, MMG refers to the incident which occurred on September 16, 2022 following the incursion into the Nambulwa concession by the armed forces who chased away, a few days later, the regularly installed staff. If MMG employees and contractors have been able to return to the site since September 28, 2022, the DRC armed forces would still be on the scene.

The second incident relates to the Sokoroshe II concession where the same scenario would have taken place a little earlier, on July 1, 2022, with the company’s employees and other contract workers who, in fact, were unable to return to the site, prevented by the military.

In both cases, the company indicates that it has been informed of the conclusion of various agreements between GECAMINES and third-party companies, allowing the latter to carry out activities in the areas in question.

These areas would however be part of mining leases concluded with GECAMINES and should allow MMG to increase copper production at Kinsevere, its only mine operated in the DRC.

According to the mining company, GECAMINES justifies these actions by violations of mining agreements by MMG.

As a reminder, the Kinsevere copper mine entered production in 2017. It delivered 22,090 tonnes of copper cathodes in the first half of 2022.

MMG announced, in March 2022, a project of 550 to 600 million USD intended in particular to extend the life of the mine by 13 years from 2022, with an annual production of 80,000 tons of copper cathodes and 4 to 6,000 tons of cobalt hydroxide.