EITI-DRC report does not capture enough information on the SICOMINES mining project, according to AFREWATCH
The African Observatory of Natural Resources (AFREWATCH) focused on the SICOMINES mining project, in its analysis note of the draft framework of the EITI-DRC reports 2018-2020, made public during this month of August. AFREWATCH specifies that the EITI report today does not capture enough information on the SICOMINES project nor does it allow to create a citizen debate around this project, while the risk of indebtedness for the country remains very high.
Therefore, the African Observatory of Natural Resources suggests the improvement of the submission forms in order to integrate the following information: “- the quantity of copper and cobalt produced (with an explanation if the production is that provided for in the convention yes or no and why. And which party is responsible?); – The amount spent on infrastructure from 2009 to the present day, and the period in which the Chinese side expects to finish financing the infrastructure; – the turnover, expenditure and amount reimbursed per year (knowing that the project is totally exempt); – the amount invested for the two components of the project (infrastructure and mines until 2020) “, informs the AFREWATCH analysis note.
This note evokes other information not captured. These are questions that the EITI-DRC reports do not answer in addition to other concerns.
“11 years after the signing of the agreement: out of 3 billion of infrastructures, the Chinese Business Group (GEC) has only disbursed less than $ 350 million. While the normal logic would have been for the infrastructure part to be completely financed before the mining project reaches maturity / production. Without rigorous monitoring, the DRC will finance its own infrastructure, pay the interest on its own money to Chinese companies. – At the end of the reimbursement, the mining and infrastructure parts with interest, the agreement and even the various EITI reports do not explain why the GEC will have 68% of the shares and the GCM 32% in SICOMINES; Given the risk of the country’s indebtedness, the EITI had to initiate a thematic study to assess the respect of commitments between the two parties. This analysis should provide technical advice to the Congolese government, “adds the said analysis note.Note that this scoping report was produced with the blessing of the Executive Committee of the DRC, through the Technical Secretariat. This report must determine the scope of application of the EITI declarations process, the collection and declaration tools as well as the reliability of the data.
