MIBA recovery plan valued at USD 453 million, the DRC Portfolio Minister promises her involvement

The Bakwanga mining company (MIBA) held a workshop in Kinshasa on Friday, January 6th to discuss its recovery plan. MIBA has been facing serious difficulties for the past two decades, with production coming to a halt in November 2008 and only resuming at a low level in 2011. The recovery plan, estimated at 453 million USD, is set to be implemented over the course of five years, and includes an investment plan of 161 million USD that will be carried out over three years.

According to the participants of the workshop, MIBA’s current situation is dire and the company requires fresh capital in order to recover. Some options discussed included seeking funding from MIBA’s own funds, such as claims on the Congolese state, and utilizing the balance that SACIM owes to the Congolese state and should be paid to MIBA as determined by the Ministry of Mines. However, MIBA does not currently meet the requirements of the OHADA Uniform Act, as its equity is lower than its share capital, which may result in the company being declared bankrupt. To avoid this outcome, the workshop participants suggested capitalizing the company through the organization of the capital of two MIBA shareholders, the Congolese state and SIBEKA. If this is not possible, the option of opening MIBA’s capital to other shareholders in order to secure the necessary funding for recovery may be considered.

Adèle Kahinda, the DRC Portfolio Minister, assured workshop participants of her commitment to ensuring the government’s implementation of the MIBA recovery plan. The workshop resulted in the unanimous adoption of the recovery plan, with a focus on establishing a new economic model, proposing recovery financing options, and implementing accompanying measures for MIBA’s recovery. The recovery plan was prepared by COPIREP at the request of the Presidential Council for Strategic Watch (CPVS), which was concerned about MIBA’s financial troubles. The workshop, attended by stakeholders including the Presidency, Prime Minister, Ministries of Budget, Portfolio, Finance, Mines, COPIREP, MIBA, and social partners, was held to present the validated recovery plan to the President of the Republic and the government. The workshop featured a high-level technical working session, during which the recovery plan was reviewed by all stakeholders.