Gecamines Spearheads Efforts for Equity and Growth in the DRC’s Mining Sector
he Democratic Republic of Congo’s (DRC’s) state miner, Gecamines, is embarking on a comprehensive strategy to maximize returns from its copper and cobalt joint ventures.
With a focus on renegotiating higher stakes and asserting greater influence in management, Gecamines aims to capitalize on the global demand for minerals crucial to the green energy transition.
Gecamines, under the leadership of chairperson Guy Robert Lukama, is advocating for increased representation of local executives on joint venture boards to ensure more effective asset management and decision-making.
Lukama emphasizes the need to rectify past agreements that disadvantaged Gecamines, which, at its peak, was a major producer of copper and cobalt.
Amid China’s significant role in the DRC’s mining sector, particularly in cobalt production, President Felix Tshisekedi’s government has expressed concerns over deals skewed in China’s favor.
Gecamines seeks to address these disparities by securing more favorable terms and enhancing its involvement in the governance of mining projects.
Gecamines’ recent agreement with China’s CMOC Group underscores its push for equitable partnerships. The deal grants Gecamines the right to acquire a portion of copper and cobalt production from the Tenke Fungurume Mining project, along with substantial settlements and dividends.
Leveraging such agreements, Gecamines aims to establish its foothold in trading copper and cobalt, challenging existing arrangements with partners like Glencore and Zijin Mining.
However, Lukama highlights the need for a thorough review of existing agreements, as some partners have failed to meet expectations, resulting in community disengagement and mounting debts.
Changes to the mining code in 2018 have empowered Gecamines to assert its interests and pursue revisions to mining contracts, signaling a shift towards greater state participation and accountability in the DRC’s mining sector.
As Gecamines strives for a more equitable distribution of benefits from mining activities, the future of the DRC’s mining landscape stands at a critical juncture, with potential implications for investors, communities, and the broader economy.
