There are several joint-venture projects with private investors in progress.

The history of Katanga province is irrevocably linked with that of what used to be one of the world’s major copper mining operations, Gecamines. Under Belgian colonial rule, extensive copper and cobalt deposits were discovered here, and the Belgians wasted no time in setting up what was then the Upper Katanga Mining Union. Production went on apace and revenues were substantial. “Part of Belgium was built with money from the Congo,” says Nzenga Kongolo, the former CEO of Gecamines. “It is a matter of pride for us.”

A few years after independence was obtained in 1960, the company was nationalized, renamed Générale des Carrières et des Mines, and started producing even more. By the 80s, it was reaching annual production levels of almost 500,000 tonnes of copper and 17,000 tonnes of cobalt, making it the fifth-largest copper producer in the world. At the height of its operations, Gecamines was the sole instigator of social development in the region, opening schools, hospitals and canteens to care for the workers and their families.

Unfortunately, the production was not used rationally to develop the mining industry. Towards the end of Mobutu’s regime, he alone managed all the company’s funds, misusing them for other purposes. In addition, production equipment was not renovated and fell into disrepair. Today, Gecamines is producing at less than 10% of its capacity, and installations have not been properly maintained for over 15 years.

NZENGA KONGOLO Former CEO of Gecamines

But the reserves are still there. Gecamines has calculated that they can continue to extract copper for at least the next 50 years with certitude, possibly for the next 75 or 100. Much of current production is surface mining, and the potential for the subsoil could be even bigger, needing only an updated survey and exploitation campaign.

Although Gecamines turned to the private sector in 1995, the country’s civil war put many projects on hold. The advent of new legislation in 2002 and the establishment of a transitional government in 2003 opened the way for Gecamines to start negotiating with foreign mining companies to establish partnerships and joint ventures. The company has several major projects on the go. One of them is the Kasombo project with George Forrest International, and that has been followed by the Kamoto joint agreement signed in August 2005. Another is Tenke Fungurume, which is considered to be one of the world’s largest undeveloped copper deposits with the potential to reach annual production of 400,000 tonnes. This is jointly owned with Tenke Mining and U.S. giant Phelps Dodge. Another project is DCP, operated with GEC Group, and KMT is a project they have negotiated with ADASTRA. Gecamines also has several other significant projects in progress.

Mr. Kongolo, the former CEO, is careful to stress that private companies should not be expected to provide social infrastructures. This, he says, is a job for the government. Thanks to the new mining code, the state should be able to rely on income from duties paid by private mining companies. This in turn should allow them to make improvements, thus attracting ever more investment. “If it develops the mining industry, a well-organized state will have sufficient financial means,” he says.

Copper extraction could continue for at least another 50 years.

“What is important is to succeed in giving value to the DRC’s natural reserves. Public-private partnerships could bring in new technology and give value to a structured economic development, rigorously controlled by the state within a fiscal framework that is organized and stable.”

“We confirm that we have important mineral resources but that we have problems of financing and management. If we work together with American or other investors, we will surely succeed.” Mr. Kongolo is convinced that the presence of large multinational companies in Katanga would be a guarantee of the sustainability of the peace process, helping to enable economic development and reduce poverty even while they continue to make a profit.