DRC: New President supports his Predecessor's mining policies that were regularly criticised by civil society because of opacity and corruption

Author: William Clowes, Bloomberg , Published on: 4 March 2019

"Congo President Supports Predecessor's Mining Policies", 2 March 2019

The Democratic Republic of Congo’s new president appeared to offer support to his predecessor’s defining mining policies, which are opposed by international investors active in the country. “We will clean up the business climate through the popularization of the new mining code and the conclusion of the win-win contracts,” Felix Tshisekedi said... “I will be attentive to the grievances of the mining operators through a permanent dialogue.”

Former opposition leader Tshisekedi was sworn in on Jan. 24, ending Joseph Kabila’s 18-year rule. The ex-president last year backed an overhaul of Congo’s mining code that increased royalties and imposed new taxes. State-owned mining company Gecamines, under the leadership of Kabila ally Albert Yuma, is also intent on renegotiating all its copper and cobalt joint ventures. Yuma has already revised partnerships with Glencore Plc and Eurasian Resources Group Sarl, claiming they previously yielded minimal benefits to the government and Gecamines. The heads of Glencore and Barrick Gold Corp. have already met with Tshisekedi or his chief of staff. Congo is the world’s biggest source of cobalt, which is used to make batteries that power electric vehicles, and one of the top producers of copper...Congo’s sole crude producer, France’s Perenco SA, announced it will start constructing a 100-megawatt, gas-fired power plant on the Atlantic coast.

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Related companies: Barrick Gold Gécamines Glencore Perenco