Africa: Africa Progress Panel Urges Transparency in Potential DRC Mining Deal

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Geneva — Recent history shows the systematic undervaluation of state-owned mineral assets has been disastrous for the people of the Democratic Republic of the Congo.
The Africa Progress Panel voices its concern over a possible mining deal in the Democratic Republic of the Congo (DRC) and urges the country’s state-owned mining company, Gécamines, to ensure full transparency.
According to Bloomberg media reports, dated October 7th and October 17th, Gécamines, is proposing to sell its 20 percent stake in the Kamoto Copper Company to the Fleurette Group.
The Panel recognises the enormous potential of the DRC’s mineral wealth to drive economic growth and to improve significantly the lives of its 67 million population. But recent history gives good reason to be concerned.
Our 2013 Africa Progress Report, Equity in Extractives – Stewarding Africa’s natural resources for all, analysed five mining deals in the DRC, which involved the systematic undervaluation of state-owned mining assets and sale to offshore companies, all linked to the same company, Fleurette, an offshore-registered holding company owned by Israeli billionaire, Dan Gertler. Together the five deals cost the DRC at least US$1.36 billion, an amount equal to almost twice the DRC’s combined annual budget for health and education in 2012.
Across the five …

Source: AllAfrica News: Africa

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