October 11, 2007, 12:00
By Mahlatse Gallens
Democratic Republic of Congo (DRC) mining minister Martin Kabwelulu says no mining contracts will be issued to companies that are not contributing to the post war reconstruction of the country.
Kabwelulu was speaking at the infrastructure partnership for Africa's development - IPAD conference in Kinshasa.
IPAD is the largest infrastructure, power and mining conference in the country, attracting potential investors. The DRC has one of the largest deposits of gold, diamonds and copper, counted among its natural resources but the country remains very poor.
DRC struggling to rebuild its economy
The country is struggling to rebuild its economy, shattered by almost more than three decades of dictatorship followed by two civil wars.
The government says the free ride, many mining companies have enjoyed will come to an end. Many mining companies signed contracts during the country's two civil wars in exchange for nothing. Despite its rich deposits in gold, diamond, copper, the country remains desperately poor with no infrastructure and unemployment at more than 70%.
Kabwelulu said: "Since the DRC has been mining for 100 years, we should have had a very developed country, even more developed than the United States of America. But in fact it is a very poor country, with this slogan of a very rich country with a very poor population. Now the government has decided that these riches, the natural resources, and most importantly mining, petrol and others that are discovered should be used to reconstruct the country."
Contract review underway
The country has started reviewing all contracts. They will be enforcing the mining codes that require companies to have environmental impact studies and development projects. The country has signed a five billion deal with China in exchange for infrastructure development. Despite alarms being raised by international donors and western mining companies, Kabwelulu says the deal is mutually beneficial.
"Government will sign contracts with partners who will come with money. Half of the financing will be used either for the exploitation of mining or the building of infrastructure, including roads, hospitals and schools. The contract with China has been looked at in that way,” he said.
The country has granted hundreds of mining licenses but many companies have failed to pay the licensing fees or have not started operating. These will be revoked to open space for new investors. The review of the contracts was expected to be finalized by September, but the minister says it is yet to be completed. He also dismissed suggestions that the process lacked transparency and could be a mere rubber-stamping exercise.
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