DRC: “SICOMINES SA” has allocated more than 1 billion USD from 2008 to 2021 in the construction of infrastructures
The Sino-Congolaise des Mines (SICOMINES), is a Joint-venture, established in DR Congo in accordance with the Collaboration Agreement relating to the development of a Mining Project and an Infrastructure Project, signed between the Congolese Government and the Groupement Chinese Companies in 2008. The share capital is 100 million USD, GΓ©camines SA (RDC) 20% and SIMCO SAS (RDC) 12%, CHINA RAILWAY holds 41.72% of shares, POWERCHINA 25.28%, ZHEJIANG HUAYOU 1%. As part of its infrastructural achievements in the DRC, SICOMINES has allocated from 2008 to date more than 1 billion USD, of which 977 million has been allocated, and 43 infrastructure contracts have been concluded, which cover the entire extent of the country. comprising the capital Kinshasa and various provinces such as: Haut-Katanga, Lualaba, Nord-Kivu,Tshopo and South Kivu.
SICOMINES participated in the construction of 480 km of roads, such as the Boulevard du 30 Juin, the Avenue du Tourisme and the Boulevard Triomphal in Kinshasa, the rehabilitation of the Kolwezi road system as well as more than 100,000 square meters of buildings. and works, namely the Cinquantenaire Hospital, the Esplanade du Palais du Peuple in Kinshasa. This has significantly contributed to improving the country’s urban image.
For the moment, road projects for a total length of 675 km and a stadium project for an area of ββ20,131 m3 are under construction. There is in particular the: Project for the Opening of the Kamina-Kabongo Road; Kabondo-Dianda-Mukwende Road Opening Project; Construction project of the Lomela Bridge and its Social Support Components; Kitanda-Ankoro Road Rehabilitation and Modernization Project; Ankoro-Manono Road Rehabilitation and Modernization Project (115KM); Study and works contract for the road construction project to link the kalemie terminal and the new kalemie stadium to boulevard de lumumba.
Breakdown of the share capital of SICOMINES
Regarding the distribution of the share capital of the SICOMINES joint venture, opinions differ. Civil society structures believe that the shares going to the DRC are insignificant. What justifies the distribution of the share capital of this Sino-Congolese contract which allocates 68% to the Chinese side and 32% to the Democratic Republic of Congo, Elie Tshinguli, Deputy Director General of SICOMINES defends himself, in a interview given to journalists from Kinshasa, including ACTUALITE.CD and DESKECO.COM took part.
“All the capital that is invested in the Sino-Congolese program comes from the Chinese side. This cooperation which gave rise to SICOMINES is a bit special. It is a cooperation where the minerals are sold to China in return China gives us means to develop the infrastructures which are lacking in our country. It is since 2008 that the program started and it is in 2016 that we launched the production. So the financing of China in this project started since 2008 before the production This is one of the reasons why those who provide the capital are in the majority, βhe argues.
“People can say something about it, but the Congolese side knows that the project is good, profitable for the DRC and China. It is the only GΓ©camines partnership that has started to pay dividends after a year of producing cathodes”, notes Mr. Elie Tshinguli.
The DRC is forced to repay its loans and continue to produce so that several government projects can benefit from SICOMINES funding.
“SICOMINES is working to repay the loans under this contract. It is up to the Congolese State which has all the necessary documents to do the evaluation. At our level, we are working to pay the repayment of these loans and we continue to produce so that the other projects which must come from the government can be financed for the good of the population “, explains the DGA of SICOMINES.
Tax exemption for SICOMINES
SICOMINES benefits from almost total tax and parafiscal exemptions. Which is justifiable, according to Mr. Elie Tshinguli.
“SICOMINES finds itself in a slightly more specific context compared to other mining companies. It is we who finance infrastructure projects throughout the country in return, we must work to pay our loans. moment that the two parties had agreed to exempt SICOMINES from all taxes. It was in 2008 that we started the project. And our first production took place in 2016 and during that time, there were several achievements across the country. This exemption is beneficial for both parties, “he said.
Specifications
The SICOMINES joint venture signed on August 20, 2021, its specifications with the local community of Luilu and the Kapata district located in Kolwezi, as required by the mining code. These specifications are valued at 11.58 million USD. This document traces the majority of the needs of the population whose executions we are going to begin this year.
Use
Sino-Congolaise des Mines has created 7,300 local jobs, of which more than 2,100 employees work at SICOMINES SA, and 5,200 employees work in subcontracting companies.
Each year, the company selects 100 top performing employees known as βstar employeesβ. The cumulative number of star employees stands at 796 for a total of 572 employees rewarded.
Talents Trained: A total of 956 professional mining talents were trained, including laboratory assistants, electricians, instrument workers, mechanics, concentration operators, metallurgy operators, roasting operators, aciders, surveyors, forklift drivers, drivers cranes and bricklayers.
Busanga hydroelectric power station
It should be noted that SICOMINES has also funded the Busanga hydroelectric power plant to the tune of USD 656 million, located in the territory of Lubudi, chiefdom of Munanga, in the province of Lualaba, 138 km from Kolwezi, which will be commissioned on November 20, 2021. The launch of this hydroelectric project, which began in November 2017, will effectively address the electricity shortage at Sino-Congolaise des Mines (SICOMINES SA) in its phase II of its development and the surrounding area. The total installed capacity is four turbines at 240 MW. The average annual electricity production is 1320 billion kW.h.
