INGELE IFOTO Minister of Mines

The DRC has always relied on minerals for the bulk of its export revenues. “The mining sector is of the utmost importance to the country’s economic recovery,” says Ingele Ifoto, Minister of Mines. Certainly, renewed activity in the mining sector could help to boost GDP growth. But first the sector itself needs to be given a jump-start, and significant reforms are already leading to positive changes.

A new mining code, issued in 2002 with World Bank backing, means to create a transparent and equitable set of rules for minerals investment, covering the prospecting, exploration, exploitation, processing, transportation and sale of minerals as well as setting clear guidelines on financing procedures and taxation. “We now have a single office where all payments can be made and licenses can be obtained,” says the minister. In reference to the reopening of the mining registry (CAMI), whose mission is to record mining rights, including grants, transfers and cancellations, and stimulate investment in the sector.

“The fact that we are functioning at all today is mainly thanks to private investors,” says the minister. Undoubtedly, the recent years of conflict and political instability have kept many away. Mr. Ifoto estimates that $1.5 billion needs to be injected into the sector, partly to renovate out-of-date equipment, but also to provide local technical and professional training. Also pressing is an up-to-date geological survey of the country. There is a real need to assess the potential of the mining resources. Current knowledge is limited because of outdated exploration data that was left by the Belgians in the sixties. But with the use of modern technology, there could be some great improvements.

An up-to-date geological survey of the DRC would pinpoint its vast resources of unearthed riches.

The mining code, coupled with improved political stability, is beginning to attract mining companies back to a country rich in copper, cobalt, zinc, uranium, tin and iron reserves, not to mention gold and diamonds.

Anvil Mining, a copper and silver producer, is one of them. They operate the Dikulushi Mine, which is the first mining project in the DRC to receive political risk insurance cover from the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group. The group’s positive results are a good sign for prospective investors.

Same thing for Comisa/First Quantum, a Canadian copper-mining company that has seen its initial $7m investment in the DRC increase to $30m, and is continuing exploration activities. According to CEO Matt Pascal, the new mining code has been a vast improvement. In his opinion, the more investors come to the DRC, the better the region will be for future investment.

The Ministry of Mines in Kinshasa is making progress with sweeping changes.

The new code has also provided Adastra Minerals with a proper legal framework to negotiate from, allowing a new deal to be struck with Gecamines, the state-owned mining company, and the government. So far the firm has invested around $40m, and aims to invest half as much again in the short term.

The new legislation takes into account the potential harm that mining can do to the environment. Each applicant must prove to the relevant authorities that they have an adequate environmental rehabilitation plan. But beyond all the efforts, James Tidmarsh, a Swiss-based lawyer representing several mining projects in the DRC, strikes through a word of caution. He says that simply adopting a new law modeled on an international template is not enough. “Continued effort will be required over many years to implement the new rules. Mentalities need to change and that will take time. Courthouses need to be built; civil servants and judges trained.” But he recognizes that the process has begun and that in the years since its adoption, the mining code has dramatically stabilized the regulatory environment.