MoneyBags1348
Top 20
14/03/2023
Sammael Posted
Sammael Posted
Chinese Miners in Africa
- Thread starter MoneyBags1348
- Start date
MoneyBags1348
Top 20
14/03/2023
Frank Posted
Market: fall in the prices of the main minerals exported by the DRC
The prices of the main raw materials exported by the Democratic Republic of Congo have generally fallen on the international market, indicates the Central Bank of Congo.
Copper fell 2.1% to $8,805.9 per ton.
The price of cobalt continued its downward trend during the four consecutive weeks of the current month of February.
It is established at 33,760.00 USD per ton, a decrease of 4.3%.
In monthly footfall, the two major commodities fell 6.0% and 30.5% respectively.
According to the Ministry of Mines, the Democratic Republic of Congo produced a total of 2,515,846.74 tonnes of copper and 115,371.31 tonnes of cobalt in 2022.
Since 2020, copper exports have increased by 14.4% to reach a level of more than 10 billion USD, or 68.3% of total exports.
This increase reflects the simultaneous effect of the increase in prices on international markets.
This drop in prices is bad business for the DRC.
China to increase control over global cobalt supply — report
China is poised to increase its control over the global cobalt supply, according to a report by Darton Commodities, a UK-based cobalt trader.
Over the next two years, China’s share of cobalt production is expected to reach half of global output, up from 44% at present, Darton said.
Chinese refining activity reached 140,000 tonnes in 2022, giving the country a 77% global share of refining capacity.
The price of the metal hit a 32-month low this month amid a surge in production.
Global mine production grew 42% between 2020 and 2022 as covid-19 related supply chain constraints eased, existing operations ramped up and several new mines were commissioned.
Glencore Plc was by far the world’s largest cobalt miner last year, mainly from its two operations
Congo.
Eurasian Resources Group and China’s CMOC Group Ltd., which also have large Congo operations, followed the Swiss company as the biggest producers.
Global supplies are expected to surge to around 210,000 tonnes this year, up 24% from 2022, while demand is forecast to rise 8% to 205,000 tonnes, according to the report.
Liberum analyst Tom Price told Reuters that prices are expected to average $54,840 a tonne this year and $50,320 in 2024, compared with $63,739 last year.
“A lot of things converged at the same time to push the market down: the relaxation of logistics issues, weak consumer electronic sales and a technology shift towards lower or no cobalt EV batteries,” Caspar Rawles, chief data officer at Benchmark Mineral Intelligence, told the Financial Times.
Cobalt prices could fall further if Tenke Fungurume, the world’s second-largest cobalt mine owned by CMOC, is allowed to resume exports from the DRC after a tax dispute led to an export ban last July.
The company has kept producing despite the ban, stockpiling 10,000 to 12,000 tonnes of the metal.
mining.com
Frank Posted
Market: fall in the prices of the main minerals exported by the DRC
The prices of the main raw materials exported by the Democratic Republic of Congo have generally fallen on the international market, indicates the Central Bank of Congo.
Copper fell 2.1% to $8,805.9 per ton.
The price of cobalt continued its downward trend during the four consecutive weeks of the current month of February.
It is established at 33,760.00 USD per ton, a decrease of 4.3%.
In monthly footfall, the two major commodities fell 6.0% and 30.5% respectively.
According to the Ministry of Mines, the Democratic Republic of Congo produced a total of 2,515,846.74 tonnes of copper and 115,371.31 tonnes of cobalt in 2022.
Since 2020, copper exports have increased by 14.4% to reach a level of more than 10 billion USD, or 68.3% of total exports.
This increase reflects the simultaneous effect of the increase in prices on international markets.
This drop in prices is bad business for the DRC.
China to increase control over global cobalt supply — report
China is poised to increase its control over the global cobalt supply, according to a report by Darton Commodities, a UK-based cobalt trader.
Over the next two years, China’s share of cobalt production is expected to reach half of global output, up from 44% at present, Darton said.
Chinese refining activity reached 140,000 tonnes in 2022, giving the country a 77% global share of refining capacity.
The price of the metal hit a 32-month low this month amid a surge in production.
Global mine production grew 42% between 2020 and 2022 as covid-19 related supply chain constraints eased, existing operations ramped up and several new mines were commissioned.
Glencore Plc was by far the world’s largest cobalt miner last year, mainly from its two operations
Congo.
Eurasian Resources Group and China’s CMOC Group Ltd., which also have large Congo operations, followed the Swiss company as the biggest producers.
Global supplies are expected to surge to around 210,000 tonnes this year, up 24% from 2022, while demand is forecast to rise 8% to 205,000 tonnes, according to the report.
Liberum analyst Tom Price told Reuters that prices are expected to average $54,840 a tonne this year and $50,320 in 2024, compared with $63,739 last year.
“A lot of things converged at the same time to push the market down: the relaxation of logistics issues, weak consumer electronic sales and a technology shift towards lower or no cobalt EV batteries,” Caspar Rawles, chief data officer at Benchmark Mineral Intelligence, told the Financial Times.
Cobalt prices could fall further if Tenke Fungurume, the world’s second-largest cobalt mine owned by CMOC, is allowed to resume exports from the DRC after a tax dispute led to an export ban last July.
The company has kept producing despite the ban, stockpiling 10,000 to 12,000 tonnes of the metal.
mining.com
MoneyBags1348
Top 20
17/03/2023
Frank Posted
Chinese contract: 4 organizations whose ODEP and ACAJ support the IGF report and announce judicial actions for justice to be done
The Observatory of Public Expenditure (ODEP), the Congolese Association for Access to Justice (ACAJ), the African Human Rights Defense Association (ASADHO) and the Economic Governance and Democracy network (REGED ) read, this Wednesday, March 1, a joint declaration relating to the report of the General Inspectorate of Finance on the Chinese contract.
Signed in 2008 between the DRC and a group of Chinese companies, this contract on which the Sicomines was born (companies held 68% by the companies of China and 32% by the Gecamines) contains, in its terms, the Commitment of the Congolese State to provide the deposits and the other party, financial means for the exploitation of mines.
This, with the obligation for Chinese companies to raise funds for infrastructure in the DRC.
The 4 civil society organizations, aligning behind the IGF report, regret that in 15 years since the signing of this convention, the DRC has lost tens of billions without any visible infrastructure results.
While criticizing the complacency with which the public authorities have negotiated this convention, these structures, according to the declaration read by Professor Florimond Muteba of the ACAJ, say also "that the Chinese party has won at least more than five times income Hoped to start the project, without any consideration up to the profits garnered ”.
ODEP, ACAJ, ASADHO and REGED call the President of the Republic, but also the Government as well as courts not to leave the economic crimes committed in the context of this convention.
For these structures, it would also be necessary to "undertake the revisation of this contract taking into account the damage and losses suffered by the DRC, failing to suspend and even cancel this agreement, or even nationalize the Sicomines".
“Apart from this press point, we will work on legal actions.
In the coming days, we, civil society organizations, together with the Congolese, we will take care of, challenge national and international judicial institutions.
Anyone who has any responsibility in this debacle will be cited and made available to justice, "said Maître Georges Kapiamba, president of the ACAJ.
In addition, they denounce all the harsh criticisms against the IGF after the publication of this report.
Civil society, like Congolese citizens in general, must support and encourage the IGF, they said.
mediacongo
Frank Posted
Chinese contract: 4 organizations whose ODEP and ACAJ support the IGF report and announce judicial actions for justice to be done
The Observatory of Public Expenditure (ODEP), the Congolese Association for Access to Justice (ACAJ), the African Human Rights Defense Association (ASADHO) and the Economic Governance and Democracy network (REGED ) read, this Wednesday, March 1, a joint declaration relating to the report of the General Inspectorate of Finance on the Chinese contract.
Signed in 2008 between the DRC and a group of Chinese companies, this contract on which the Sicomines was born (companies held 68% by the companies of China and 32% by the Gecamines) contains, in its terms, the Commitment of the Congolese State to provide the deposits and the other party, financial means for the exploitation of mines.
This, with the obligation for Chinese companies to raise funds for infrastructure in the DRC.
The 4 civil society organizations, aligning behind the IGF report, regret that in 15 years since the signing of this convention, the DRC has lost tens of billions without any visible infrastructure results.
While criticizing the complacency with which the public authorities have negotiated this convention, these structures, according to the declaration read by Professor Florimond Muteba of the ACAJ, say also "that the Chinese party has won at least more than five times income Hoped to start the project, without any consideration up to the profits garnered ”.
ODEP, ACAJ, ASADHO and REGED call the President of the Republic, but also the Government as well as courts not to leave the economic crimes committed in the context of this convention.
For these structures, it would also be necessary to "undertake the revisation of this contract taking into account the damage and losses suffered by the DRC, failing to suspend and even cancel this agreement, or even nationalize the Sicomines".
“Apart from this press point, we will work on legal actions.
In the coming days, we, civil society organizations, together with the Congolese, we will take care of, challenge national and international judicial institutions.
Anyone who has any responsibility in this debacle will be cited and made available to justice, "said Maître Georges Kapiamba, president of the ACAJ.
In addition, they denounce all the harsh criticisms against the IGF after the publication of this report.
Civil society, like Congolese citizens in general, must support and encourage the IGF, they said.
mediacongo
MoneyBags1348
Top 20
17/03/2023
Congo’s Deal Of The Century
Bribery In The Congo
Congo’s Deal Of The Century
Bribery In The Congo
MoneyBags1348
Top 20
From Bloomberg
November 2021
www.bloomberg.com
November 2021
China Cash Flowed Through Congo Bank to Former President’s Cronies
A leak of 3.5 million documents shows how a Chinese-run company moved millions of dollars to former Congo President Joseph Kabila’s family and allies.
China Cash Flowed Through Congo Bank to Former President’s Cronies
A leak of 3.5 million documents shows how a Chinese-run company moved millions of dollars to former Congo President Joseph Kabila’s family and allies.
www.bloomberg.com
MoneyBags1348
Top 20
15/03/2023
More bullshiting and propaganda by Chinese companies trying to pressure and manipulate Felix
kongopress.com
China/DRC: the Union of Chinese Companies in DR Congo writes to Félix Tshisekedi stressing their importance on cobalt and Congolese copper
"we have produced more than 1,850,000 tons of copper and more than 85,000 tons of cobalt, 80% and 76% of DRC production, US$3 billion to the public treasury and created more than 60,000 jobs"
NEWSECONOMY
Kiki Kienge
By Kiki Kienge
For some time, on social networks in Africa, there have been many videos of mistreatment of African workers in Chinese companies and especially ordered by Chinese foremen.
China's hegemony in Africa, especially on its resources, is in no way to be questioned, a geopolitical war that is being played out between the Eastern and Western block for the control of Africa, forgiveness of Africa's wealth, which causes as victims the African populations who are now accustomed to its misery and famine despite their wealth of their lands.
In DR Congo, the report of the IFB (General Inspectorate of Finance) on the Sino-Congolese company, SICOMINES has only reinforced this negative feeling of the Congolese population towards Chinese companies.
China now controls more than 80% of cobalt and more than 70% of copper, would employ at least 60,000 Congolese according to the USMCC. But jobs that a large majority of Congolese consider precarious, because they offer only short-term contracts, often even daily contracts to Congolese natives, unlike Chinese workers who enjoy indeterminate contracts and especially advantages related to expatriate workers, who often do not
After the direct reaction of the Chinese ambassador to DR Congo, Zhu Jing to defend the consortium of Chinese companies in the SICOMINES joint venture, strangely since this Sino-Congolese contract does not bind and has never engaged the government of the People's Republic of China.
This is the tour of the Union of Mining Companies with Chinese Capital in the Democratic Republic of the Congo (USMCC), which in a statement reports on the importance of China's economic weight in DR Congo.
Read the full press release:
Union of Chinese Mining Corporations with Capital in the DRC
USMCC
To His Excellency Sir, Félix-Antoine TSHILOMBO President of the Democratic Republic of Congo.
(With the expression of our most deferential tributes)
Palace of the Nation.
Excellency Mr. President of the Republic, We, the Union of Chinese Capital Mining Companies (USMCC) in the Democratic Republic of Congo, have the great honor to send this letter to Your Excellency our respectful tributes and sincere greetings.
Created in 2017, the USMCC has always asked its members to carry out their affairs under DRC legislation, to actively cooperate with the Congolese government, to pay taxes in accordance with Congolese laws and regulations and to fulfill their social responsibilities. To date, the USMCC has 42 members, including 25 mining companies and 17 mining service companies. In 2022, we produced more than 1.850,000 tons of copper and more than 85,000 tons of cobalt, representing 80% and 76% of DRC's national production respectively, and paid more than US$3 billion to the public treasury and created more than 60,000 jobs in total.
We are pleased to note that since taking office, Excellency Mr. President of the Republic, you have worked to maintain the stability of the State, develop the economy, improve the business climate and energetically attract foreign investment to the DRC. Thanks to the support and impetus of Your Excellency, the Presidency of the DRC has set up the Business Climate Cell (CCA) which launched the National Business Climate As the Union of Mining Companies with Chinese Capital in the DRC Astronomical USMCC.
Secondly, the Congolese tax authorities do not calculate taxes, including that on surplus profits (ISPE), under Congolese legislation and with single standards and impose on us huge "tax adjustment" fees or unfounded and unjustified administrative fines.
Thirdly, some agents of Congolese services such as DGI, DGDA and BCC, abuse their power by arbitrarily applying the law, blocking bank accounts, suspending import and export licenses or ordering the seizure and arbitrary transfer of company property, which has caused us many difficulties in activities and huge financial losses. These are just a few examples.
With regard to disputes involving SICOMINES and TFM, we encourage member companies to resolve disputes through friendly consultation with maximum sincerity and goodwill. But at the same time, we are determined to support them in defending their legitimate rights and interests by legal means if necessary.
In conclusion, mining companies with Chinese capital are key players in the Congolese economy and crucial builders of win-win cooperation between China and the DRC. Our companies are not only Chinese, but also and above all Congolese. Our development is closely linked to the prosperity and stability of the DRC, as well as to the happiness and well-being of the Congolese people. We are ready to continue to support the governance of Your Excellency and the Congolese government, to respect Congolese laws and regulations, to actively assume our social responsibilities and to contribute to the recovery of the Congolese mining industry and the industrial modernization of the DRC. We sincerely ask you to pay attention to the many difficulties encountered by mining companies to Chinese capital, to instruct the competent services of the Congolese government divergences and help companies solve their problems in order to better achieve development
common.
Please accept, Excellency Mr. President of the Republic, the expression of our highest consideration and deepest respect.
Union of Chinese Mining Corporations with Capital in the DRC
M. GONG QINGGUO
USMCC
33/A AV. LOFOI, Q/GOLF, C/LUBUMBASHI, RDC.
zhongkuangxiehui@163.com
More bullshiting and propaganda by Chinese companies trying to pressure and manipulate Felix
Chine/RDC : l'Union des entreprises chinoises en RD Congo écrit à Félix Tshisekedi soulignant leur importance sur le cobalt et cuivre Congolais - Kongo Presse
Par Kiki Kienge Depuis un certain temps, dans les réseaux sociaux en Afrique, on trouve nombreuses vidéos de maltraitance des travailleurs Africains dans les entreprises Chinoises et surtout ordonnées par…
kongopress.com
China/DRC: the Union of Chinese Companies in DR Congo writes to Félix Tshisekedi stressing their importance on cobalt and Congolese copper
"we have produced more than 1,850,000 tons of copper and more than 85,000 tons of cobalt, 80% and 76% of DRC production, US$3 billion to the public treasury and created more than 60,000 jobs"
NEWSECONOMY
China/DRC: the Union of Chinese Companies in DR Congo writes to Félix Tshisekedi stressing their importance on cobalt and Congolese copper
March 15, 2023Kiki Kienge
By Kiki Kienge
For some time, on social networks in Africa, there have been many videos of mistreatment of African workers in Chinese companies and especially ordered by Chinese foremen.
China's hegemony in Africa, especially on its resources, is in no way to be questioned, a geopolitical war that is being played out between the Eastern and Western block for the control of Africa, forgiveness of Africa's wealth, which causes as victims the African populations who are now accustomed to its misery and famine despite their wealth of their lands.
In DR Congo, the report of the IFB (General Inspectorate of Finance) on the Sino-Congolese company, SICOMINES has only reinforced this negative feeling of the Congolese population towards Chinese companies.
China now controls more than 80% of cobalt and more than 70% of copper, would employ at least 60,000 Congolese according to the USMCC. But jobs that a large majority of Congolese consider precarious, because they offer only short-term contracts, often even daily contracts to Congolese natives, unlike Chinese workers who enjoy indeterminate contracts and especially advantages related to expatriate workers, who often do not
After the direct reaction of the Chinese ambassador to DR Congo, Zhu Jing to defend the consortium of Chinese companies in the SICOMINES joint venture, strangely since this Sino-Congolese contract does not bind and has never engaged the government of the People's Republic of China.
This is the tour of the Union of Mining Companies with Chinese Capital in the Democratic Republic of the Congo (USMCC), which in a statement reports on the importance of China's economic weight in DR Congo.
Read the full press release:
Union of Chinese Mining Corporations with Capital in the DRC
USMCC
To His Excellency Sir, Félix-Antoine TSHILOMBO President of the Democratic Republic of Congo.
(With the expression of our most deferential tributes)
Palace of the Nation.
Excellency Mr. President of the Republic, We, the Union of Chinese Capital Mining Companies (USMCC) in the Democratic Republic of Congo, have the great honor to send this letter to Your Excellency our respectful tributes and sincere greetings.
Created in 2017, the USMCC has always asked its members to carry out their affairs under DRC legislation, to actively cooperate with the Congolese government, to pay taxes in accordance with Congolese laws and regulations and to fulfill their social responsibilities. To date, the USMCC has 42 members, including 25 mining companies and 17 mining service companies. In 2022, we produced more than 1.850,000 tons of copper and more than 85,000 tons of cobalt, representing 80% and 76% of DRC's national production respectively, and paid more than US$3 billion to the public treasury and created more than 60,000 jobs in total.
We are pleased to note that since taking office, Excellency Mr. President of the Republic, you have worked to maintain the stability of the State, develop the economy, improve the business climate and energetically attract foreign investment to the DRC. Thanks to the support and impetus of Your Excellency, the Presidency of the DRC has set up the Business Climate Cell (CCA) which launched the National Business Climate As the Union of Mining Companies with Chinese Capital in the DRC Astronomical USMCC.
Secondly, the Congolese tax authorities do not calculate taxes, including that on surplus profits (ISPE), under Congolese legislation and with single standards and impose on us huge "tax adjustment" fees or unfounded and unjustified administrative fines.
Thirdly, some agents of Congolese services such as DGI, DGDA and BCC, abuse their power by arbitrarily applying the law, blocking bank accounts, suspending import and export licenses or ordering the seizure and arbitrary transfer of company property, which has caused us many difficulties in activities and huge financial losses. These are just a few examples.
With regard to disputes involving SICOMINES and TFM, we encourage member companies to resolve disputes through friendly consultation with maximum sincerity and goodwill. But at the same time, we are determined to support them in defending their legitimate rights and interests by legal means if necessary.
In conclusion, mining companies with Chinese capital are key players in the Congolese economy and crucial builders of win-win cooperation between China and the DRC. Our companies are not only Chinese, but also and above all Congolese. Our development is closely linked to the prosperity and stability of the DRC, as well as to the happiness and well-being of the Congolese people. We are ready to continue to support the governance of Your Excellency and the Congolese government, to respect Congolese laws and regulations, to actively assume our social responsibilities and to contribute to the recovery of the Congolese mining industry and the industrial modernization of the DRC. We sincerely ask you to pay attention to the many difficulties encountered by mining companies to Chinese capital, to instruct the competent services of the Congolese government divergences and help companies solve their problems in order to better achieve development
common.
Please accept, Excellency Mr. President of the Republic, the expression of our highest consideration and deepest respect.
Union of Chinese Mining Corporations with Capital in the DRC
M. GONG QINGGUO
USMCC
33/A AV. LOFOI, Q/GOLF, C/LUBUMBASHI, RDC.
zhongkuangxiehui@163.com
MoneyBags1348
Top 20
26/03/2023
Frank Posted
Chinese contract: "everything is provided for in the agreement with regard to rebalancing", Jules Alingete
It is since Wednesday March 22, 2023 that the Government of the Democratic Republic of Congo (DRC) and the group of Chinese companies formed by China Airways Corporation and Synohydro began the process of revisiting the said contract signed on April 22, 2008 in the aim of rebalancing the interests between the two parties.
Present at this work following the publication of the report of the General Inspectorate of Finance (IGF), which denounces the imbalances in the execution of the Chinese contract, Jules Alingete, Inspector General and Head of Department of the IGF, indicated that this procedure has already been provided for by the signatory of the said contract.
According to him, this procedure is not something new.
Because, he says, the signatories of the convention had already planned a revisitation if one of the parties considered it necessary.
"There is first of all the determination of the President of the Republic, Félix Tshisekedi, expressed many times and the last time he made it known during the last weekly meeting of the Council of Ministers.
In view of the elements of the imbalances observed, the Congolese side is now examining and deepening, we must arrive at a revisitation.
And then it's not something new.
The convention itself has provided for a revisitation when one or the other party feels that there are things that need to be changed said Alingete.
It should be noted that this working session between the Congolese and Chinese parties was chaired by the Chief of Staff of the President of the Republic, Guylain Nyembo Mbwizya.
Several members of the Congolese Government took part in these talks, in particular the Minister of Infrastructure and Public Works, the Minister of Justice and the Deputy Minister of the Budget.
After a first day of work devoted to the presentation of the report of the General Inspectorate of Finance (IGF) and the defense of the Chinese side, the two parties will continue discussions within a commission.
This commission's mission is to shed enough light to allow the Democratic Republic of Congo to return to its most legitimate rights.
During the last weekly meeting of the Council of Ministers, held on Friday, March 17, 2023, the President of the Republic, Félix Tshisekedi took a position in favor of revisiting this contract to restore the balance between the two parties.
The President of the Republic had motivated this decision following cases of non-compliance with the provisions of the contract, non-performance of contractual commitments and subjectivity in certain acts taken by the parties.
In his communication to the members of the Government, Félix Tshisekedi dwelled on the worrying nature of this situation which he describes as deplorable both on the one hand for the development of the mining sector which is to date the engine that drives growth economy of the DRC and on the other hand, by the slowness of the dynamism which should normally know the program of construction of the infrastructures which the DRC badly needs for the hatching of its potential as well human as economic.
This issue has not gone unnoticed in the House of People's Representatives.
On Tuesday, March 21, 2023, during the plenary devoted to the adoption of the calendar for the March 2023 session, the President of the National Assembly, Christophe Mboso, announced that his institution will very soon look into this convention of cooperation.
“It should be noted that during this session, contracts signed between the Congolese State and certain partners will be subject to parliamentary control such as the Chinese contract and many others.
I wanted you to remember this, that in the days to come we are going to invest ourselves because this bad governance is depriving the Congolese State of the revenue essential for development,” said Christophe Mboso. “recalled Jules Alingete.
mediacongo
26/03/2023
Frank Followed Up This Post With
Zhu Jing: “profits from mining are still very far from the 4 billion dollars invested by Chinese companies”
The report of the General Inspectorate of Finance (IGF) on the "infrastructure against mines" contract, signed in 2008 between the government and the group of Chinese companies, is still in the news.
While the IGF points to a glaring imbalance in this convention, the Chinese side denies everything.
According to the Chinese ambassador to the DRC, Zhu Jing, the IGF report does not correspond to reality, is not credible and also suffers, according to him, from the absence of "solid evidence".
During a press conference organized on Friday March 24 in Kinshasa, the Chinese ambassador indicated that, contrary to the report of the IGF, the profits drawn, until then, from the mining exploitation are still very far of the 4 billion dollars invested by Chinese companies.
For Zhu Jing, Chinese companies have not yet started to profit from mining, 15 years after the entry into force of the agreement signed with the Congolese government.
“With this reality, can we still say that Sicomines is a predatory company that earns a lot of money, without giving any benefit to our Congolese friends? he wondered.
For his part, Diao Ying, secretary of the board of directors of Sicomines, said that of the 10 million reserves estimated in the Sicomines project, at the current stage, only 10% of the deposits have already been exploited, against 30% infrastructure investments.
“So far, we have exploited 10% of the estimated deposits, but we have already invested around 30 million in infrastructure.
How can you say that people came here to take money, ”she reacted to the accusations from the IGF.
Regarding the overcharging of infrastructures, the Chinese side recalled that the role of Sicomines is limited to financing the projects selected and presented by the Congolese government.
“It is the ACGT which monitors and organizes the work.
She is in a better position to answer this question.
All projects and all costs of infrastructure projects are decided by the Congolese government,” said Diao Ying.
Dialogue with the Congolese side
While more and more voices are rising to demand the revision of what the World Bank has called a "one-sided contract", the Chinese side has affirmed that it has not yet been notified in this sense, so official.
However, she said, she remains open to any dialogue, supported the Chinese ambassador to the DRC, Zhu Jing, while recalling that the convention itself provides for discussion mechanisms.
In addition, the Chinese side has promised to communicate, in the near future, its figures which contradict those presented by the General Inspectorate of Finance.
mediacongo
Frank Posted
Chinese contract: "everything is provided for in the agreement with regard to rebalancing", Jules Alingete
It is since Wednesday March 22, 2023 that the Government of the Democratic Republic of Congo (DRC) and the group of Chinese companies formed by China Airways Corporation and Synohydro began the process of revisiting the said contract signed on April 22, 2008 in the aim of rebalancing the interests between the two parties.
Present at this work following the publication of the report of the General Inspectorate of Finance (IGF), which denounces the imbalances in the execution of the Chinese contract, Jules Alingete, Inspector General and Head of Department of the IGF, indicated that this procedure has already been provided for by the signatory of the said contract.
According to him, this procedure is not something new.
Because, he says, the signatories of the convention had already planned a revisitation if one of the parties considered it necessary.
"There is first of all the determination of the President of the Republic, Félix Tshisekedi, expressed many times and the last time he made it known during the last weekly meeting of the Council of Ministers.
In view of the elements of the imbalances observed, the Congolese side is now examining and deepening, we must arrive at a revisitation.
And then it's not something new.
The convention itself has provided for a revisitation when one or the other party feels that there are things that need to be changed said Alingete.
It should be noted that this working session between the Congolese and Chinese parties was chaired by the Chief of Staff of the President of the Republic, Guylain Nyembo Mbwizya.
Several members of the Congolese Government took part in these talks, in particular the Minister of Infrastructure and Public Works, the Minister of Justice and the Deputy Minister of the Budget.
After a first day of work devoted to the presentation of the report of the General Inspectorate of Finance (IGF) and the defense of the Chinese side, the two parties will continue discussions within a commission.
This commission's mission is to shed enough light to allow the Democratic Republic of Congo to return to its most legitimate rights.
During the last weekly meeting of the Council of Ministers, held on Friday, March 17, 2023, the President of the Republic, Félix Tshisekedi took a position in favor of revisiting this contract to restore the balance between the two parties.
The President of the Republic had motivated this decision following cases of non-compliance with the provisions of the contract, non-performance of contractual commitments and subjectivity in certain acts taken by the parties.
In his communication to the members of the Government, Félix Tshisekedi dwelled on the worrying nature of this situation which he describes as deplorable both on the one hand for the development of the mining sector which is to date the engine that drives growth economy of the DRC and on the other hand, by the slowness of the dynamism which should normally know the program of construction of the infrastructures which the DRC badly needs for the hatching of its potential as well human as economic.
This issue has not gone unnoticed in the House of People's Representatives.
On Tuesday, March 21, 2023, during the plenary devoted to the adoption of the calendar for the March 2023 session, the President of the National Assembly, Christophe Mboso, announced that his institution will very soon look into this convention of cooperation.
“It should be noted that during this session, contracts signed between the Congolese State and certain partners will be subject to parliamentary control such as the Chinese contract and many others.
I wanted you to remember this, that in the days to come we are going to invest ourselves because this bad governance is depriving the Congolese State of the revenue essential for development,” said Christophe Mboso. “recalled Jules Alingete.
mediacongo
26/03/2023
Frank Followed Up This Post With
Zhu Jing: “profits from mining are still very far from the 4 billion dollars invested by Chinese companies”
The report of the General Inspectorate of Finance (IGF) on the "infrastructure against mines" contract, signed in 2008 between the government and the group of Chinese companies, is still in the news.
While the IGF points to a glaring imbalance in this convention, the Chinese side denies everything.
According to the Chinese ambassador to the DRC, Zhu Jing, the IGF report does not correspond to reality, is not credible and also suffers, according to him, from the absence of "solid evidence".
During a press conference organized on Friday March 24 in Kinshasa, the Chinese ambassador indicated that, contrary to the report of the IGF, the profits drawn, until then, from the mining exploitation are still very far of the 4 billion dollars invested by Chinese companies.
For Zhu Jing, Chinese companies have not yet started to profit from mining, 15 years after the entry into force of the agreement signed with the Congolese government.
“With this reality, can we still say that Sicomines is a predatory company that earns a lot of money, without giving any benefit to our Congolese friends? he wondered.
For his part, Diao Ying, secretary of the board of directors of Sicomines, said that of the 10 million reserves estimated in the Sicomines project, at the current stage, only 10% of the deposits have already been exploited, against 30% infrastructure investments.
“So far, we have exploited 10% of the estimated deposits, but we have already invested around 30 million in infrastructure.
How can you say that people came here to take money, ”she reacted to the accusations from the IGF.
Regarding the overcharging of infrastructures, the Chinese side recalled that the role of Sicomines is limited to financing the projects selected and presented by the Congolese government.
“It is the ACGT which monitors and organizes the work.
She is in a better position to answer this question.
All projects and all costs of infrastructure projects are decided by the Congolese government,” said Diao Ying.
Dialogue with the Congolese side
While more and more voices are rising to demand the revision of what the World Bank has called a "one-sided contract", the Chinese side has affirmed that it has not yet been notified in this sense, so official.
However, she said, she remains open to any dialogue, supported the Chinese ambassador to the DRC, Zhu Jing, while recalling that the convention itself provides for discussion mechanisms.
In addition, the Chinese side has promised to communicate, in the near future, its figures which contradict those presented by the General Inspectorate of Finance.
mediacongo
MoneyBags1348
Top 20
28/03/2023
Frank Posted
Chinese contract: of the $822 million disbursed, only $300 million are traceable, $522 million vanished, the Chinese charge ACGT and Moïse Ekanga
Judicial sources contacted by Actu30.cd reveal that the justice received the counter-expertise report of the work carried out by the Technical Bureau of State Control (BTC) under the Chinese contract.
According to them, of the 822 million US dollars released by SICOMINES S.A for the rehabilitation and construction of infrastructure, only 300 million have been traced, 522 million USD are missing.
In this regard, the Chinese side instructs the Congolese Works Agency (ACGT) and Senator Moïse Ekanga.
Congolese believe that “governance was in the hands of sorcerers and that President Félix Tshisekedi came to put the country back in the direction of development”.
mediacongo
Frank Posted
Chinese contract: of the $822 million disbursed, only $300 million are traceable, $522 million vanished, the Chinese charge ACGT and Moïse Ekanga
Judicial sources contacted by Actu30.cd reveal that the justice received the counter-expertise report of the work carried out by the Technical Bureau of State Control (BTC) under the Chinese contract.
According to them, of the 822 million US dollars released by SICOMINES S.A for the rehabilitation and construction of infrastructure, only 300 million have been traced, 522 million USD are missing.
In this regard, the Chinese side instructs the Congolese Works Agency (ACGT) and Senator Moïse Ekanga.
Congolese believe that “governance was in the hands of sorcerers and that President Félix Tshisekedi came to put the country back in the direction of development”.
mediacongo
MoneyBags1348
Top 20
29/03/2023
Cruiser Posted
The government of the Republic suspends the activities of the Chinese mining company JIANG MINING SPRL, accused of illicit exploitation and of being at the root of the water pollution of the Aruwimi river (La Lohale), in the province of Tshopo.
This is what emerges from a decision signed on March 25 by the Minister of Mines, a copy of which has reached our editorial office. In her letter, Antoinette Kalambayi, who cites her sources, notes that this company engaged in the exploitation and extraction of gold ore, diamonds and rare metals on the bed of the Aruwimi river, without authorisation.
Qualifying this behavior as a repeat offender, the Minister of Mines decided, on behalf of the Congolese government, to suspend all activities of JIANG MINING SPRL.
To this end, it instructs the head of the provincial mining division in the Tshopo to take all necessary measures to ensure that the minerals exploited by this company are confiscated in compliance with the legal provisions.
This decision also follows the visit in January 2022 of the Deputy Prime Minister, Minister of the Environment and Sustainable Development, Ève Bazaïba Masudi to Basoko to get an idea of this pollution.
JJ KITENGE
Cruiser Posted
DRC-Mines: the government suspends the activities of the Chinese company JIANG MINING SPRL following the pollution of the Aruwimi River
The government of the Republic suspends the activities of the Chinese mining company JIANG MINING SPRL, accused of illicit exploitation and of being at the root of the water pollution of the Aruwimi river (La Lohale), in the province of Tshopo.
This is what emerges from a decision signed on March 25 by the Minister of Mines, a copy of which has reached our editorial office. In her letter, Antoinette Kalambayi, who cites her sources, notes that this company engaged in the exploitation and extraction of gold ore, diamonds and rare metals on the bed of the Aruwimi river, without authorisation.
Qualifying this behavior as a repeat offender, the Minister of Mines decided, on behalf of the Congolese government, to suspend all activities of JIANG MINING SPRL.
To this end, it instructs the head of the provincial mining division in the Tshopo to take all necessary measures to ensure that the minerals exploited by this company are confiscated in compliance with the legal provisions.
This decision also follows the visit in January 2022 of the Deputy Prime Minister, Minister of the Environment and Sustainable Development, Ève Bazaïba Masudi to Basoko to get an idea of this pollution.
JJ KITENGE
MoneyBags1348
Top 20
Another example of how and why China has been able to access high ranking officials in the DRC
Minerals and China’s Military Assistance in the DR Congo
Beijing’s growing investments in strategic resources in the DRC go hand in hand with increased military assistance intended to secure those assets.
thediplomat.com
MoneyBags1348
Top 20
30/03/2033
Bin59 Posted
(Not DRC, but Chinese Related)
Another article (Nov 2022) of interest but not directly related to AVZ:
Brine nests and treatment areas of the lithium mine of the Chilean company SQM, in the Atacama Desert. (Martin BERNETTI / AFP) (Photo by MARTIN BERNETTI/AFP via Getty Images)Canada no longer wants China to have stakes in its lithium mining companies. A change of attitude that means a lot.
The news: Canada no longer wants Chinese holdings in its lithium companies.
Bin59 Posted
(Not DRC, but Chinese Related)
Another article (Nov 2022) of interest but not directly related to AVZ:
Canada orders China to withdraw from its lithium companies: "Don't have the same values"
Olivier DaelenFriday, November 4, 2022
Brine nests and treatment areas of the lithium mine of the Chilean company SQM, in the Atacama Desert. (Martin BERNETTI / AFP) (Photo by MARTIN BERNETTI/AFP via Getty Images)Canada no longer wants China to have stakes in its lithium mining companies. A change of attitude that means a lot.
The news: Canada no longer wants Chinese holdings in its lithium companies.
- The Canadian government ordered China to withdraw from three lithium extraction companies. Are targeted:
- Sinomine Rare Metals Resources' participation in Power metals (which mines in Canada)
- Chengze Lithium International's participation in Lithium Chile (which mines in Chile and Argentina)
- Zangge Mining Investment's stake in Ultra Lithium (which mines in Canada, the USA and Argentina)
- It is China that is directly targeted. On the one hand, because it would not share Canadian values. On the other hand, because it would represent a threat to the security of the country. This decision follows a review by the defence and intelligence services that led to the conclusion that these investments posed a threat to national security.
- The Minister of Industry, François-Philippe Champagne, indicated that Canada remains in favor of foreign direct investment by companies that "share our interests and values", but that it "act decisively when investments threaten our national security and our supply chains of essential minerals".
- In parallel with this announcement, Canada also indicated that it would only exceptionally allow public entities to invest in its essential mineral companies.
- Here too, it is the Chinese groups that are in sight.
- At the same time, Ottawa is busy strengthening its economic ties with its Western allies in terms of critical minerals, such as lithium.
- The initiative is welcomed by the United States.
- "This is a change in Canada's national security policy, which is moving from traditional national security risks to critical supply chain risks," Nazak Nikakhtar, a former U.S. Department of Commerce official, told the Financial Times.
- China obviously sees this with a bad eye, but it does not panic. Its refiners still process more than half of the global supply.
- It would be different if Australia, the world's largest producer, followed the same path as that taken by Canada, in turn excluding Chinese groups.
- It should be noted, as explained here, that Europe is also trying to get rid of its dependence on Chinese lithium refiners
- An essential element of batteries, lithium is perceived as a major issue for the green transition - although its extraction is anything but green.
- According to the IEA's estimates, global demand for lithium will increase more than tenfold over the next twenty years.
MoneyBags1348
Top 20
I started this thread on 18/02/2023 so don’t think I included this link…. which was on the 16/02/2023 and provides more evidence of Chinese companies ripping off the DRC
SICOMINES, scam of the century:
US$90,936,120 billion in assets, 3 billion in infrastructure for the DRC, to China 84,736,120 billion in profit and 2,163,623,850 billion in tax exemptions
"SICOMINES holds assets of US$90,936,120 billion"
NEWSECONOMYINTERNATIONAL
Kiki Kienge
By Kiki Kienge
"Some of these projects are now funded by the Republic as part of the PDL-145 Territories project," says the report of the General Inspectorate of Finance (IGF).
WIN-WIN contract
It should be the "contract of the century" for DR Congo with the People's Republic of China (the largest contract that China has signed on the Black Continent), signed in 2008 under the regime of Joseph Kabila Kabange. A barter contract that should be a "win-win", of which China should obtain long-term access to the abundant resources, especially mining, that the country of Lumumba is full of; cobalt, copper, especially oil and others.
The first phase dates back to September 17, 2007, it provided for a loan from the Chinese bank EXIM Bank of US$8.5 billion. In particular, the agreement provided for the granting of a US$two billion loan related to the modernization of the mining production apparatus. Two Chinese companies, Sinohydro and CREC (China Railway Engineering) were to carry out infrastructure work, at least 3,500 km of roads, as many kilometers of railways, road infrastructure, 31 150-bed hospitals and 145 health centers for an estimated value of US 6.5 billion.
In 2008, the second phase, the agreement was completed by an additional loan of US$5 billion.
SICOMINES
Sicomines (Sino-Congolese des Mines), a Joint Venture created between the Congolese State represented by Gécamines with 32%, the Chinese of CREC and SINOHYDRO with 68%, for a capital of US$100 million. Which is still questionable since SICOMINES held assets of US$90,936,120 billion.
The Chinese of CREC and SINOHYDRO, should provide US$68 million and lend US$32 million to GECAMINES S.A, for the release of the shares of the Congolese state company in the share capital of SICOMINES, which must be repaid with interest of US$10,979,566 by deductions from Gécamines' dividends.
It should be noted that China obtained in particular, as described in Article 6 of the barter contract; "the total exemption from all taxes, duties, taxes, customs, direct or indirect charges, domestic or on import and export, payable in the DRC."
Conclusion of the IGM report
Here, the conclusion of a report by the General Inspectorate of Finance of DR Congo (IGF, Agency under the supervision of the Presidency of the Republic) published on February 15, 2023, clearly demonstrates the side of the contract between China and DR Congo, winner for China and loser for DR Congo.
For example, out of US$10 billion in revenue generated by Sicomines, Chinese companies collected $9 billion and only US$822 million for infrastructure in DR Congo (more or less 11%). Which still remain to be demonstrated, since having no impact on the social life of the Congolese, nor visibility: "This programming has therefore totally forgotten the railway sector, the airports to be rehabilitated (Goma and Bukavu), the hospitals (31) to be built, the two hydroelectric dams to be built (Kakobola and Katende), the electricity distribution networks to be rehabilitated ( "IGF report.
In short, the 31 points noted in the IGF report
kongopress.com
SICOMINES, scam of the century:
US$90,936,120 billion in assets, 3 billion in infrastructure for the DRC, to China 84,736,120 billion in profit and 2,163,623,850 billion in tax exemptions
"SICOMINES holds assets of US$90,936,120 billion"
NEWSECONOMYINTERNATIONAL
SICOMINES, scam of the century: US$90,936,120 billion in assets, 3 billion in infrastructure for the DRC, to China 84,736,120 billion in profit and 2,163,623,850 billion in tax exemptions
February 16, 2023Kiki Kienge
By Kiki Kienge
"Some of these projects are now funded by the Republic as part of the PDL-145 Territories project," says the report of the General Inspectorate of Finance (IGF).
WIN-WIN contract
It should be the "contract of the century" for DR Congo with the People's Republic of China (the largest contract that China has signed on the Black Continent), signed in 2008 under the regime of Joseph Kabila Kabange. A barter contract that should be a "win-win", of which China should obtain long-term access to the abundant resources, especially mining, that the country of Lumumba is full of; cobalt, copper, especially oil and others.
The first phase dates back to September 17, 2007, it provided for a loan from the Chinese bank EXIM Bank of US$8.5 billion. In particular, the agreement provided for the granting of a US$two billion loan related to the modernization of the mining production apparatus. Two Chinese companies, Sinohydro and CREC (China Railway Engineering) were to carry out infrastructure work, at least 3,500 km of roads, as many kilometers of railways, road infrastructure, 31 150-bed hospitals and 145 health centers for an estimated value of US 6.5 billion.
In 2008, the second phase, the agreement was completed by an additional loan of US$5 billion.
SICOMINES
Sicomines (Sino-Congolese des Mines), a Joint Venture created between the Congolese State represented by Gécamines with 32%, the Chinese of CREC and SINOHYDRO with 68%, for a capital of US$100 million. Which is still questionable since SICOMINES held assets of US$90,936,120 billion.
The Chinese of CREC and SINOHYDRO, should provide US$68 million and lend US$32 million to GECAMINES S.A, for the release of the shares of the Congolese state company in the share capital of SICOMINES, which must be repaid with interest of US$10,979,566 by deductions from Gécamines' dividends.
It should be noted that China obtained in particular, as described in Article 6 of the barter contract; "the total exemption from all taxes, duties, taxes, customs, direct or indirect charges, domestic or on import and export, payable in the DRC."
Conclusion of the IGM report
Here, the conclusion of a report by the General Inspectorate of Finance of DR Congo (IGF, Agency under the supervision of the Presidency of the Republic) published on February 15, 2023, clearly demonstrates the side of the contract between China and DR Congo, winner for China and loser for DR Congo.
For example, out of US$10 billion in revenue generated by Sicomines, Chinese companies collected $9 billion and only US$822 million for infrastructure in DR Congo (more or less 11%). Which still remain to be demonstrated, since having no impact on the social life of the Congolese, nor visibility: "This programming has therefore totally forgotten the railway sector, the airports to be rehabilitated (Goma and Bukavu), the hospitals (31) to be built, the two hydroelectric dams to be built (Kakobola and Katende), the electricity distribution networks to be rehabilitated ( "IGF report.
In short, the 31 points noted in the IGF report
- Constitution of SICOMINES in 2008 in violation of Article 1 of the Royal Decree of 22 June 1926: USD 100,000,000.00 set by the GEC were very insufficient and therefore disproportionate to the corporate purpose. Point 6 of this Article 1 also specifies that the statute must indicate the precise designation of the partners who must provide values with an indication of everyone's obligations.
- No assessment of the mining deposits provided by GECAMINES S.A. was made and therefore, failure to integrate the value into the share capital: the Sicomines Joint Venture with a value of US$90,936,120,000, was not integrated into the share capital as a contribution in kind by the Gécamines Group.
- Arbitrary, discriminatory and illegal nature of the fixing and distribution of the share capital at US$100,000,000.00: at the rate of 68% of the shares for the GEC and 32% for the Gécamines Group (while SICOMINES held assets of USD90.936.120.000,00). Article 2 of Law No. 77/027 specifies that foreign natural or legal persons may not hold more than 60% of the share capital.
- Significant financial imbalance to the detriment of the DRC between the advantages granted to the Chinese side and the commitments to it as well as the gains expected by the Congolese side: USD90,936,120.000,00 to the Chinese against commitments to them of USD 6.2 billion, i.e. a gain for the Chinese of USD 84,736,120.000,00 to which must be added the tax and customs exemption Even by determining the net present value (NPV), USD US$76 billion in gain for the Chinese side against US$3 billion in infrastructure for DR Congo.
- Blatant weakness and low infrastructure investments: SICOMINES has mobilized, in 14 years, financing for a total amount of USD 4,471,588,685.14 and has spent only USD 822,190,060.14 for the financing of infrastructure work, or 18.38% of the total financing mobilized.
- Paradoxically, Importance of disbursements made to Chinese companies in six years: In six years, from 2016 to October 2022, SICOMINES disbursed. $9,677,613,625.15 in favor of Chinese companies and itself for various unsupported reasons. For US$1,564,280,538.68 "contract payment" for US$1,989,864.14 and other debit transactions without indication of the reason for USD 3,827,943,282.32.
- Lack of visibility and impact of the work carried out and its unjustified selectivity in violation of Annex C to the Convention of April 22, 2008: Eligible work carried out: $534,902,461.66 Ineligible work carried out: $287,287,598.42. " and therefore this work remained, almost for almost all, without visible impact on the populations. This programming has therefore totally forgotten the railway sector, the airports to be rehabilitated (Goma and Bukavu), the hospitals (31) to be built, the two hydroelectric dams to be built (Kakobola and Katende), the electricity distribution networks to be rehabilitated (Kinshasa and Lubumbashi), the training centers for ITP professions to be built and rehabilitated,
- Unjustified debt of SICOMINES, instead of a contribution of funds by the Groupement des Entreprises Chinoises: (for USD 6.2 billion) resources whose repayment was to be provided by SICOMINES. Instead, it was the SICOMINES Joint Venture that went into debt, to the tune of USD 3,341,948,821.85 to finance and mine investments and infrastructure. But at the same time, it paid itself, from 2016 to October 2022, USD 5.464.880.564.06 on its main DUBAI account in favor of one or other accounts not yet identified.
- Failure to produce evidence of release of CDF 25,000,000,000.00 (50%) of the capital at the time of the constitution of SICOMINES in September 2008 and 50% others after the approval of the feasibility study.
- Ambiguity and confusion regarding the USD 32,000,000 loan: The loan contract sometimes states that this US$32 million was paid to Gécamines (point G of the preamble) sometimes to SICOMINES (Article 4.1 of the loan contract). In the elements made available to the IGM Mission, GECAMINES S.A. did not provide any document attesting that it has collected these funds. And, for its part, SICOMINES did not provide any bank document attesting that on April 1, 2009, its account was credited with US$32,000,000.00.
- Confusion maintained between the GEC and SICOMINES: The GEC has not been constituted as a momentary Association. Also, on the ground, the GEC seems to be confused with SICOMINES and this, in many respects, making the latter support the assumption of the performance of its contractual and in particular financial obligations, taken well before the latter was created. It is in particular the cases of Pas de Porte of US$350,000,000.00 that he had to pay to the Congolese party (Article 5.1) but that SICOMINES paid in three instalments. Case also of the loan of $50,000,000.00 requested by GECAMINES S.A. at the signing of the Convention with the GEC (Article 5.2) but finally paid by SICOMINES. This is also the case with the BUSANGA Hydroelectric Power Plant project, which was 100% funded by SICOMINES but which Chinese Investors (CHINA RAILWAY GROUP LIMITED "CREC" and POWER CONSTRUCTION CORPORATION OF CHINA) consider that they are the ones who invested via SICOMINES.
- Unfortunate positioning of SICOMINES as a "Borrower" of infrastructure project investments: This unfortunate positioning of SICOMINES as a Borrower seriously violates the following provisions: (1) Article 10.1 which says the Joint Venture will be responsible for the reimbursement of mining and infrastructure investments, (2) Article 10.2 which provides that the reimbursement of the financing of infrastructure works will be carried out by the Joint Venture
- Failure to repatriate export earnings and 5% fines due by SICOMINES: SICOMINES did not repatriate export earnings for a total of US$2,004,167,489.24 over the period from 2016 to October 2022. As such, it owes fines of 5%, or US$100,280,374.46.
- Almost systematic unjustified recourse to export pre-financing and violation of the DRC Foreign Exchange Regulations and the Mining Regulations: from March 2018 to October 2022, SICOMINES benefited from the pre-financing of its exports of minerals paid into its main account abroad to the tune of US$1,771,408,731.89. This practice is governed by Article 39 of the Foreign Exchange Regulations in the DRC. It is, in fact, a loan that the buyer grants to the exporter, which is subject to interest.
- Existence of several transactions reported in the Monthly Report sent to the BCC and the Mining Directorate as having been debited from the main account: - USD 858.548 million for payments from miscellaneous suppliers; - USD 1,220 billion for debt services; - USD 760.124 million for other international transfers and - USD 1,773 billion for other debit and term deposit (DAT) movements Justifications not produced to date.
- Non-compliance with the minimum quantity of production planned: SICOMINES has not yet been able to reach the projected production of at least 200,000 tons of copper in 2016 and 400,000 tons of copper in 2019, despite the importance of the investments made or the encroachment of the deposits of GECAMINES S.A. This also has consequences on its ability to repay investments as soon as possible in order to prevent the DRC from having to suffer a dispute.
- Encroachment of GECAMINES S.A. deposits by SICOMINES facilities (a high-potential deposit): SICOMINES' facilities, offices and housing are erected on the most important target of probable and possible cottages that can be the subject of a large additional reserve, following a campaign of geological exploration and certification of mineral resources. This is SYNCLINAL DE LA COLLINE D with an expected potential of 1.3 million t/Cu and the storage of embankments from the exploitation of the DIKULUWE deposit and the KAMIROMBE scales on PE 9682 from PE 8841.
- Irregular and unjustified payment of 4.8% of the work amounts under "Amount": this fee amounts to USD 37,256,434.59. The legality of such a levy and the destination given to the funds thus collected are a problem.
- Unjustified payment of the ROAD/CONCENTRATE tax to the Province of Lualaba: Payments totalling USD 7,700,000.00 to the Province of Lualaba with no known legal basis.
- Registration on the Pas de Porte balance sheet of USD 350,000,000.00 and application of depreciation of USD 59,610,144 at 31/12/2021: Impact on operating results. Situation decried by the auditor of SICOMINES and GECAMINES S.A.
- Payment of USD 51,000,000.00 to PACIFIC TRINITY without production of the related contract: and without evidence of the financial disinterest of the populations relocated from the SICOMINES site.
- Commercial dumping and Manipulation of transfer prices: USD 7.379.469.533.52: SICOMINES sells its production exclusively to GEC companies at arranged prices and, no one knows under what other condition (...) its sales at LME prices of the period highlights a shortfall to the detriment of SICOMINES of USD 7.379.469.533.52. This represents almost 50.37% of the turnover it would have achieved if it had sold at international prices.
- Undeclared and unpaid movable tax payable: USD 5.424.698.36: Fiscal years 2016 and 2017 and default of declaration for the movable tax for fiscal year 2018.
- Financing of all the construction investment of the BUSANGA Hydroelectric Power Plant by SICOMINES: Financing in violation of the collaboration agreement and the Joint Venture agreement: USD 596,066,577.28.
- Total release of the share capital of SYCOHYDRO by SICOMINES: Release made in violation of the collaboration agreement and the Joint-Venture agreement: USD 5,000,000.00. Decision of the majority.
- Imbroglio maintained in investment repayment periods: This imbroglio was used to reduce the amount of infrastructure investment from USD 6.5 billion to USD 3.0 billion. We probably wanted to delay the repayment and therefore the clearance of the DRC's debt to Chinese investors.
- The conclusions of the CHINA ENFI Feasibility Study are questionable, complacent and outdated: the reduction of reservations. In 2021, SICOMINES introduced another feasibility study for the renewal of its Operating Permits. In particular, there is a 7 reduction in reserves to 4,747,141.90 tons of copper and 94,982.97 tons of cobalt.
- Significant imports of goods in total exemption without evidence in the financial statements: Imports of SICOMINES from 2009 to the end of October 2022, CIF of CDF 3.413.815.915.004.00 and a FOB in USD of USD 2.275.848.597.00 for 1.030.005.93 tons of imported goods. Without evidence in the financial statements, SICOMINES having not produced the final balances of accounts or the general ledger.
- Systematic rejection in the Board of Directors and at the General Assembly of the positions and opinions of the Shareholders of Groupe GECAMINES S.A. Abuse of majority as provided for in Article 130 of the AUSCGIE: It was noted on reading the minutes of the Board of Directors and the General Assembly of SICOMINES, that the opinions and positions of the representatives of the GECAMINES S.A Group are still systematically rejected (...) Thus, the Mission asks for justifications for this almost outrageous position of the Directors of the Chinese side
- Unjustified extension to SYCOHYDRO of the benefits recognized to SICOMINES as a result of the convention: SICOHYDRO enjoys exactly the same advantages as SICOMINES in terms of tax, customs and parafiscal exemption on the grounds that it is a commitment of the DRC. This is not correct because the DRC has not made such a commitment.
- Non-performance by the GEC of its contractual commitments: It is SICOMINES that has financed everything to date thanks to the loans contracted with Chinese banks. Hence the need for the DRC to oppose to the GEC, the "Exceptio non adimpleti contractus" (the exception of non-performance of the contract).
SICOMINES, arnaque du siècle : 90.936.120 milliards $US d'actifs, 3 milliards d’infrastructures pour la RDC, à la Chine 84.736.120 milliards de bénéfice et 2.163.623.850 milliards d'exonérations fiscales - Kongo Presse
« Certains de ces projets sont aujourd’hui financés par la République dans le cadre du projet PDL-145 Territoires »
kongopress.com
MoneyBags1348
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Bribery, Brothers and a Bank - Africa Uncensored
By John Dell’Osso and Douglas Gillison If you live near buried treasure—huge deposits of oil and gas, eye-popping reserves of gold, copper, bauxite, cobalt and other things that make the world go round—odds are you’re very poor and your leaders are autocratic. Across the world, more than two...
africauncensored.online
Bribery, Brothers and a Bank
December 7, 2021By John Dell’Osso and Douglas Gillison
If you live near buried treasure—huge deposits of oil and gas, eye-popping reserves of gold, copper, bauxite, cobalt and other things that make the world go round—odds are you’re very poor and your leaders are autocratic.
Across the world, more than two thirds of the people struggling in extreme poverty live in resource-driven economies, according to research from a decade ago.
Your leaders will likely help themselves to the nation’s wealth but cut spending on education while boosting military funding, for example.
In the extreme, according to the author Tom Burgis, the social contract breaks down “because the ruling class does not need to tax the people to fund the government—so it has no need of their consent.” This is by now a familiar tale.
But this month, The Sentry, a team of investigators committed to fighting kleptocracy and ending violence by exposing grand corruption and pushing for reform, exposed a painful new chapter in the story.
In the Democratic Republic of the Congo, perhaps the resource state par excellence, former president Joseph Kabila sold his people the vision of a bright future in which they would trade millions of tons of ore to buy about $3 billion in gleaming new Chinese-built roads, hospitals and universities, helping the country to emerge from decades of war, corruption, and plunder.
Sadly, Kabila also saw this as an opportunity to take a very large cut for himself by leveraging the project to steer tens of millions of dollars in bribes from gigantic Chinese construction companies into his own pocket.
You can read this in our new report entitled “The Backchannel,” part of a broader leak project called Congo Hold-up, which saw media outlets and non-profit organizations representing over a dozen countries spanning four continents make sense of millions of bank documents and transactions.
The leak, which was obtained by the Platform to Protect Whistleblowers in Africa (PPLAAF) and French media outlet Mediapart and shared with The Sentry by the European Investigative Collaborations (EIC) network, showed how the Chinese firms, China Railway Group and Sinohydro, used a middleman with accounts at a bank run by the president’s brother to pump tens of millions of dollars into the pockets of the Kabila family, their associates, and businesses at crucial junctures in what are known as the Sicomines agreements.
When those state-owned construction juggernauts pledged beginning in 2007 to help rebuild and expand infrastructure in the Democratic Republic of Congo (DRC) in return for millions of tons of ore, they took a giant gamble.
The multibillion-dollar effort matched President Joseph Kabila’s soaring political ambitions and the nation’s pressing needs for roads, railways, and hospitals, yet its success was far from assured.
But, the Congo Hold-up leak shows that the Chinese state-owned enterprises had a few aces in the hole all along: a shell company, a slick intermediary with a network of companies, and BGFIBank DRC.
The leaked files reveal that the shell company at the center of the scheme—Congo Construction Company (CCC)—received $55 million from foreign sources apparently intended for Kabila and his entourage.
CCC later funneled $10 million back out to safety as the Kabila family faced losing both political power and control over the bank.
These funds transited the international financial system, flowing through major financial institutions like Citibank and Commerzbank to and from a country plagued by corruption, doing so under false pretenses and with little to no documentation, exposing how financial giants whose market values can dwarf the entire Congolese economy fail to protect the world’s poor from kleptocracy.
CCC’s owners were a consummate middleman, Chinese scholar and self-proclaimed investment risk expert David Du Wei, and a member of President Felix Tshisekedi’s cabinet, Minister Guy Loando. Du Wei appears to have swung into action in late December 2012, around the time when the Chinese shareholders in Sicomines, a joint venture they created along with the Congolese government to carry out the resources-for-infrastructure bargain, were negotiating with China Exim Bank back to resume financing the project.
That month, he created CCC. From December 2012 to July 2018, Du was one of the most important clients at BGFIBank DRC, where Kabila’s brother, Managing Director Francis Selemani, personally opened CCC’s client account.
CCC helped orchestrate events behind the scenes despite the fact that it engaged in no actual construction and had no legitimate business revenues or expenses on its accounts, BGFIBank DRC records show.
Against this backdrop of financial impropriety, the Kabila-led government repeatedly made decisions that benefited the Chinese stakeholders in Sicomines while the money piled up within the private commercial universe surrounding the president.
According to The Sentry’s analysis, from 2013 to 2018, CCC transferred at least $31 million to companies and people directly linked to Kabila; $21 million, largely in cash, to unknown beneficiaries; $8 million primarily to the Kabila family’s commercial partners; and over $2 million to Du’s own accounts.
CCC paid out the remaining $3 million in transfer fees and to reimburse a loan using funds Cong Maohuai’s toll management company wired Du Wei’s firm. The flow of cash increased as Kabila neared the constitutionally mandated end of his final term in office.
Over the course of one three-month period in 2016, Sicomines wired $25 million to CCC, which then transferred the money to the Kabila family, their proxies, and their commercial partners.
CCC’s role in the Sicomines deal has all the hallmarks of a massive bribery scheme: large amounts of money flowing into the accounts of people with close ties to the president, funds transiting through a bank run by the president’s brother without any meaningful scrutiny, insufficient or inaccurate documentation to justify the transfers, companies with unclear ownership, intermediaries with conflicts of interest, and decisions made in secret with significant financial benefits for the provider of the illicit funds.
This in a deal between state actors in the DRC and China, two countries known to have a high risk of corruption.
This state of affairs is not destiny, however, and nor are tales like this the exclusive province of Chinese corporations or Congolese leaders, a fact proven by the seemingly unending saga of Western oil corruption in Nigeria, for example.
The Backchannel provides a template for holding future leaders, including the DRC’s current administration, to account: Ending this state of affairs will require public vigilance, tenacious investigation and independent local law enforcement to disrupt the circle of actors who connive in looting Africa’s wealth—and hopefully bring the cycle of plunder to a close.
