Key Mining Contracts in Katanga: The economic argument for renegotiation

4 April 2007


This report is intended to make a constructive contribution to the current debate about the fairness of the mining contracts in the Democratic Republic of Congo (DRC), in particular the Kolwezi joint venture agreements between the state-owned La Générale des Carrières et des Mines (Gécamines) and private companies, which were all signed and approved during the period of the Transitional Government. By way of illustration, an economic analysis is undertaken of one of the contracts, Katanga Mining Limited’s (KML) Kamoto project. The report provides an assessment, based on available information, of the distribution of the financial benefits between KML as the private partner and Gécamines. The data is used to present a possible model for the renegotiation of Gécamines’ joint venture agreements: the other key Katanga contracts should be subject to a similar transparent analysis, whether conducted by the World Bank, the DRC Government or the companies themselves.

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