https://www.miningweekly.com
Africa|Copper|Diamonds|Gold|Mining|Resources
Africa|Copper|Diamonds|Gold|Mining|Resources
africa|copper|diamonds|gold|mining|resources

Gecamines increases stake in Boss Mining joint venture to 49%

10th December 2018

By: Reuters

  

Font size: - +

KINSHASA – The Democratic Republic of Congo's State mining company Gecamines said on Monday it would increase its stake in its Boss Mining joint venture with ENRC Africa Holdings to 49% after the two companies renegotiated terms.

The state miner is moving to increase its take from joint ventures with international miners such as Glencore and China Molybdenum, which it accuses of not bringing enough money to the country.

Congo is Africa's biggest copper and cobalt producer and also mines gold and diamonds, but it is one of the world's least developed countries with an annual budget of roughly $5-billion.

In a statement on Monday, Gecamines said its share in Boss Mining would rise to 49% from 30%, while ENRC's stake would fall to 51% from 70%.

A Boss Mining debt of $1.5-billion towards ENRC - a subsidiary of Kazakhstan's Eurasian Resources Group - has been cancelled, and the signing bonus payable by ENRC to Gecamines was raised to $165/t from $35/t of copper and copper equivalent, the statement said.

ENRC will also pay Gecamines $30-million to settle an arbitration case pending before the International Chamber of Commerce, Gecamines said.

The payment is one of a series the heavily-indebted state company has received in the past two years, including a $150-million payment in June by a Glencore subsidiary to settle a dispute over another copper mine's debts.

International activist groups, including the Carter Center and Global Witness, say hundreds of millions of dollars of Gecamines' revenues in recent years have gone missing. Gecamines denies those allegations.

Boss Mining exported over 17 000 t of copper over the first six months of 2018.

Gecamines signed its first production-sharing deal for copper and cobalt deposits with China’s Hongkong Excellen Mining Investment last week, a model it says will earn it a more equitable share of revenues from its joint ventures.

Edited by Reuters

Comments

Showroom

Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

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:0.126 0.166s - 107pq - 2rq
Subscribe Now