Uncertainty Over Renewal of Chinese SICOMINES Operating Permit
According to reports, the Congolese government may not renew the operating permit of the Chinese-owned mining company SICOMINES next year.
The Inspector General of Finance, Jules Alingete, said that the permit renewal is subject to negotiations and added that the demands of the IGF are clear: the $3 billion promised to the DRC by the Chinese company must be delivered, and the gains must be rebalanced.
The contract between the DRC and the group of Chinese companies GEC was signed in 2008, and it promised $6.5 billion worth of infrastructure, including the construction of 3,500 km of roads, railways, 31 hospitals with 150 beds, and 145 health centers. However, the IGF has identified several cases of imbalance in the agreement, which has been described as the “contract of the century.” One example cited was the “glaring weakness and low level of infrastructure investment” in the contract.
The IGF report noted that the Chinese company had collected more than $10 billion from the exploitation, while the DRC has yet to receive the $3 billion promised to them.
The IGF is calling for the Chinese company to fulfill its promise of $3 billion, which will help to rebalance the gains from the contract.
In summary, the future of SICOMINES in the DRC is uncertain, pending negotiations and the fulfillment of the demands of the Inspector General of Finance.
The imbalance in the 2008 contract between the DRC and GEC has led to calls for the rebalancing of gains, which includes the delivery of the promised $3 billion to the DRC.
