Gécamines has siged its first mining production sharing agreement, confirming the attractiveness of the DRC for international private groups.
Gécamines has concluded with Hongkong Excellen Mining Investment, a company affiliated to the major shareholder of the Chinese listed company Shanghai Putailai New Energy Tech, a partnership agreement structured on a production sharing model with regard to the exploitation of the Kingamyambo and Kilamusembo deposits, whose reserves could exceed 1,000,000 tons of copper and 100,000 tons of cobalt.
This innovative structure, inspired by the practice in the oil and gas industry, allows Gécamines, as soon as the production begins, to become owner of a significant portion of copper and cobalt produced during the entire life of the mine, regardless of the financial results of the project.
It thus aims to allow a better alignment of interests between partners, in particular on sensitive issues such as the control over costs related to financing and services provided by our partners’ affiliates.
Gécamines welcomes the conclusion of this innovative project with a leading player in the manufacture of lithium-ion batteries and their various components, which confirms, where necessary, the attractiveness of the Democratic Republic of the Congo for international private groups, including for end consumers of minerals through innovative partnerships, in contrast to the alarmist rhetoric of major players in the mining industry of the country.
It is fully in line with the strategy of redefining its current and future partnerships, in order to achieve a better sharing of revenues and benefits for Gécamines and the Democratic Republic of the Congo.