https://www.miningweekly.com
Africa|Copper|Mining
Africa|Copper|Mining
africa|copper|mining

Congo State miner in production-sharing deal with Chinese firm

3rd December 2018

By: Reuters

  

Font size: - +

KINSHASA – Congo's Gecamines said on Monday it had signed a production-sharing deal for copper and cobalt deposits with HongKong Excellen Mining, which will pay a $40-million signing bonus.

Democratic Republic of Congo is Africa's top copper producer and the leading miner of cobalt, which is used for electric car batteries, but remains one of the world's poorest countries.

Congo's state mining company said the first such production-sharing deal by Gecamines would guarantee it a "significant" share of annual production from processing facilities in the southeastern town of Kolwezi.

Gecamines has said that its joint ventures with international miners like Glencore and China Molybdenum do not bring enough money into state coffers and is turning instead to production-sharing agreements, which are common in the oil sector.

"Production sharing agreements align the interests of the two partners because the risk now weighs more on the investor than on Gecamines," Gecamines economic adviser Stephane Cormier said in a presentation.

Gecamines chairman Albert Yuma added that a $40-million instalment of Hong Kong Excellen's signing bonus would be paid by the end of the year.

Since its heyday in the 1980s, when it produced close to 500 000 tonnes of copper a year, Gecamines has fallen heavily into debt and last year produced less than 16 000 tonnes.

Edited by Reuters

Comments

Latest News

Magazine video image
Magazine round up | 29 March 2024
29th March 2024

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.105 0.14s - 91pq - 2rq
Subscribe Now