DRC natural resources review press of Monday, May 20, 2013

About the fall of metal prices on world markets, the newspaper le Phare stresses that "mining in the Congo in anxiety" and notes that "responsible of mining company in the DRC, on May, are concerned for two reasons. Not only have they followed in April, metal prices on world markets have experienced a significant decline, but that the DRC temporarily suspended Initiative for the Extractive Industries Transparency Initiative (EITI) still stammers to regularize his case. Where a cyclical weakening in mining testifying maintaining a gross balance of opinions to 10.6% in April, down from 20% in March. "

On another issue, the newspaper  lePotentiel speaks of "Confusion around the Grand Inga project" to indicate that "it is in Paris, far from Kinshasa, the government has chosen to conclude this past weekend, the agreement to implement the Grand Inga hydroelectric project. Without fanfare. " And the daily wonders: "Why is the government he plays secretive Are there interests that the signatories would not want to reveal to the public Bearer high hopes for both the DRC and for the whole? Africa, the Grand Inga project still swimming in confusion and finish, could disappoint. "
 According to the source (note Belgian agency Belga), the paper said, "with a production of 40,000 MW, the Grand Inga project will provide electricity to run half of the African continent." However, the project in its first named Inga 3 Lower Chute, will produce 4,800 MW. The final release notes in stride "Through these cooperative agreements, South Africa plans to buy a significant share of electricity production of the new dam, thus asserting itself as a key partner." What to say? The partners say "South Africa and take 2 500 MW of 4800 MW power plant of the future Inga 3 Lower Chute, thereby becoming the buyer reference."
For the implementation of this mega project, a giant consortium meets the DRC, South Africa, Spain and China, under the auspices of the World Bank (WB), the African Development Bank (AfDB) and the European Investment Bank (EIB). EDF and GDF Suez firms are involved in the project for all aspects of engineering.
Belga reported that three groups participate as candidates in the competitive selection process developer: Chinese Sinohydro and Three Gorges Corporation, operators of China's Three Gorges Dam, the Spanish Actividades de Construcción y Servicios (ACS), and Eurofinsa EEA, and the Korean-Canadian Daewoo, Posco and SNC Lavalin.
In the first phase of its implementation, Inga 3 should therefore be added to the two existing dams, Inga (Inga 1 and 2). According to estimates, Grand Inga, this gigantic hydroelectric project could provide 40% of electricity in Africa. The power of 40,000 megawatts expected ultimately could cost Usd 80 billion. The Grand Inga project will be of a size almost twice the Three Gorges Dam located on the Yangtze River in China - the largest hydroelectric project in service in the world.

In the same vein, the newspaper le Phare asks: "Dam Katende: Where is the money?" and notes that "convinced that the dam Katende was not just made an announcement during the election period to solicit votes from kassaien people in 2006 and 2011, the member of the Union for the Congolese Nation Lubaya Claudel, in its oral question with debate to the Minister of Water Resources and Electricity, Bruno Kapanji denounced multiplicities poses the first stone by the President of the Republic. During the plenary on Wednesday 15 May, André Claudel has Lubaya demonstrated point by point the inconsistencies in the timing of government work on the dam Katende, which result in him embarrassment to this project. "

The same paper discusses the "block of funding five projects" and citing Minister Lambert Mende, announces that "Eximbank has not withdrawn from the Sino-Congolese partnership." The newspaper reported that "in response to the information relayed by the print media in Kinshasa showing the withdrawal of the Chinese bank Eximbank financing program infrastructure within five yards." The tabloid states that "the Minister noted Eximbank is not in direct partnership with the Congolese government. Rather, the finance group of companies who signed the partnership with the DRC as part of the construction of infrastructure. Before announcing that to date, the funding made by the bank in this context amounts to 750 million U.S. dollars over a billion provided in the clause. "

On another note, the newspaper le Potentiel indicates that "Pressed on all sides, particularly by environmentalists, including WWF (World Wildlife Fund) and Greenpeace, the French oil company Total, which is involved in a project oil exploration near the Virunga National Park in the Albertine Graben in eastern DRC, has promised not to touch this world heritage".
Total will not enter the protected area, the CEO said on Friday the French group. The exploration program Total is strictly limited to an area outside the Virunga National Park and the group confirms its commitment to the current limits in case they would be reduced, said Christophe de Margerie, during the General Meeting of Shareholders of Total, responding to a request from the association WWF / France.

Ecofin Agency reports that "the first general meeting of the new mining giant Xstrata and Glencore trading had two high points. Firstly, the Chairman of the Board, Sir John Bond, from Xstrata , was ousted from office and secondly, the insistent questions were raised about mining contracts in the DRC. "
The group resulting from the recent merger of commodities trader Glencore International with Xstrata mining group met for the first time its shareholders as a new entity. 80.85% of shareholders voted against the re-election of John Bond on the board. Glencore Xstrata will have a new interim president in the person of Anthony Hayward, former head of British oil giant BP.
Another highlight concerned the DR Congo: Global Witness specializing in anti-corruption asked Ivan Glasenberg, CEO of the company NGOs to accept an "independent investigation" for obtaining mining licenses Kansuki and Mutanda recently denounced by the Africa Progress Panel, Kofi Annan: "Global Witness has spent a lot of time in our offices to try to understand how we acquired our assets in the Democratic Republic of Congo, they were able to review our transactions, so yes, we were subject to such an independent investigation "replied Mr. Glasenberg.
According to the Africa Progress Panel, these assets, once in possession of the state-owned Gecamines, have been transferred to "the sixth of their commercial value in the market", implying a shortfall of $ 1.36 billion for DR Congo.
Another issue concerning the DRC focused on three mines obtained by Eurasian Natural Resources Corp (ENRC) by Israeli businessman Dan Gertler. According to the Financial Times, the British Serious Fraud Office is very interested in this transaction considered doubtful. For Ivan Glasenberg, Glencore entered later in the companies concerned to make significant investments, citing the case of Katanga with nearly $ 3 billion in investments.
Ecofin Agency remember these words: "I can confirm the ban on copper concentrate", told Reuters on the sidelines of a conference in Tokyo, the Congolese Minister of Mines, Martin Kabwelulu.
Reiterating the decision of Kinshasa to ban the export of copper concentrates, Mr. Kabwelulu said that the measure "fully take effect from July or August." According to the minister, a three-month moratorium will be granted to companies to adjust their operations.
The purpose of this prohibition is to force mining companies to turn on the spot, as is already Glencore and Freeport McMoRan Copper & Gold.
The application of this law has already failed several times in recent years. Already Katumbi Moses, the powerful governor of Katanga declared its intention to ignore it.