DRC: Sokimo demands renegotiation of its association contract with Kibali Gold
Sokimo declares itself the loser in its joint venture with its partner Kibali Gold.
This is how it asks the Congolese Government to be protective by requiring this partner to sit down around a table to renegotiate a new contract that is more equitable, lasting and mutually advantageous.
The leaders of this state mining company came out of their silence and expressed their demands during a press conference held this Tuesday, May 11, 2021, at the Circle of Kinshasa.
Sokimo wants to renegotiate the contract with Kibali because of the complications created since the entry into the running of the two partners Rangold Resources Group (now Barrick Gold) and Anglogold Ashanti.
To do this, Sokimo detected complications at 9 levels:
1 ° Opacity of the debt:
The Chairman of the Board of Directors speaks of a partner loan of 2.5 billion USD at the conventional rate of 8% which, according to Sokimo, would postpone the distribution of dividends to partners until 2027.
2 ° Failure to take into account the value of the deposits contributed and dilution of Sokimo’s stake.
At this level, the PCA explains that the initiative to sell 20% of the shares of Sokimo SA did not come from SOKIMO SA, which was opposed to it.
“ It was proposed in October 2009 to the Ministers of Mines and Portfolio as a condition of access by Rangold Resources Group and Anglo Gold Ashanti, ” she said.
3 ° No discovery of new deposits since 2009.
For the acting Director General of Sokimo, while Kibali had promised to explore other deposits, it is rather observed that the partners were content, using more modern technologies, to refine the quantities and reserves of gold of the deposits already discovered by Sokimo.
4 ° Non-payment of dividends within 8 years of operation.
According to the revelations of the Chairman of the Board of Directors of Sokimo, the cumulative revenues of the exploitation amount to more than 6.5 billion US dollars in 7 years of exploitation of fields sold by Sokimo.
In fact, since 2014, Sokimo executives report, Kibali Goldmines has produced more than 143,871 tonnes.
5 ° Refusal of payment of the pass:
The managers of Sokimo estimate that the principle of Pas-de-porte payment of 1% of the value of the deposits in place representing the contribution of the concessionaire is enshrined in the mining law as well as the association contract. ” Refuse persistently, Rangold and Anglo Gold have meanwhile made no payment while Moto Gold was not one of their subsidiary to exempt them from this payment, ” she said.
6 ° refusal to pay compensation for the depletion of deposits (royalties).
7 ° Obstruction of the representation of Sokimo in the executive committee and de facto invalidation of the post of vice-chairman of the Board of Directors
8 ° Ineffective execution of the technical and financial assistance agreement.
9 ° Opacity of the “ Kibali Service Limited ” technical service contract .
Because of all the damage suffered, Sokimo SA believes that it is necessary to correct all the inequitable aspects of this partnership by optimizing for all the value drawn from the development of resources.
