17 Jan DRC state mining company plans $717 million investment
Boosted by Chinese investment, the Democratic Republic of Congo’s state-ran mining company Gecamines has revealed plans to strengthen its waning position in the national mining industry.
The company was heavily debilitated by the Congolese civil war, and remains to be straddled with debt, with the figure currently standing at US$1.6 billion of debt.
But now Gecamines is confident that a joint venture with China Nonferrous Metal Mining Group can be struck as part of the firm’s ambitious plans to re-establish itself as a major national mining player.
The predominant mining commodity in the DRC is copper, of which Gecamines expects to produce 24,000 tonnes in 2016, and expects this figures to increase to 50,000 tonnes in the following year.
After the five year $717 million investment, the firm expects to have increased its output to 100,000 tonnes a year by 2020.
However, Gecamines plans are dependent on a stable political environment, therefore any civil unrest will deter Chinese investment.