The government of the Democratic Republic of Congo is reviewing its $6bn "mineral infrastructure" deal with Chinese investors as part of a wider review of mining contracts, according to Nicolas Kazadi, finance minister.
President Felix Tshisekedi said in May that some mining contracts might be reviewed because of concerns that they did not sufficiently benefit Congo, the world's largest cobalt producer and Africa's leading copper miner.
His government this month announced the formation of a committee to reassess the reserves and resources of the Chinese molybdenum industry's huge Tenke Fungurume copper and cobalt mine to "fairly assert [its] rights".
Deals struck in 2007 with Chinese state-owned companies Sinohydro and China Railway Are also being reviewed to ensure they are "fair" and "effective", Mr Kazadi said in an interview.
Sinohydro and China Railway did not immediately respond to requests for comment. Elie Tshinguli, deputy director general of Sicomines Copper-cobalt joint venture in the Democratic Republic of Congo, majority-owned by Sinohydro and China Railway, did not respond to requests for comment.
Under a deal struck with the government of Mr Tshisekedi's predecessor, Joseph Kabila, Sinohydro and China Railway agreed to build roads and hospitals in return for a 68 per cent stake in the Sicomines joint venture.
The deal is a key part of Mr Kabila's national development programme, but critics say promised infrastructure projects are rarely fully realised and complain of a lack of transparency.
'We have seen governance issues in the past,' Mr. Kazadi said. 'We need to be more clear about the contracts, the financing behind the investments.'
He said the review was "not an issue that threatens any investor" and that the government was conducting the review "in close cooperation with China."
Chinese investors control about 70 per cent of Congo's mining industry after snapping up lucrative projects from Western companies in recent years, according to the Congolese Chamber of Mines.
Khazadi also said he expects the IMF next month to review its $1.5 billion three-year program, which received final approval in July, to confirm that all conditions have been met. There is no doubt that the review should be successful and will lead to new spending in December, the next of which will be over us $200 million to increase foreign exchange reserves. At the same time, the government plans to use half of the 1.021.7 billion Special Drawing Rights ($1.45 billion) allocated to Congo, the IMF's own currency, to further shore up reserves. Much of the rest will be used to launch an investment fund aimed at diversifying Congo's economy. It will implement new projects in new areas such as agriculture or energy production.
