The Democratic Republic of Congo aims to boost its stake in a cobalt and copper joint venture with Chinese firms to 70% from 32%, on concerns the deal gives away too much of Congo's resources with little benefit to the country.
The lopsided pact, Congo says, leaves it little means to control the operations of the venture, and the resources and revenue that are leaving the country.
The sources said the conclusions would serve as the basis for Congo's talks with the Chinese companies.The commission said Congo should seek a greater share in Sicomines because the 2008 agreement did not take account of an estimated $90.9 billion worth of reserves that Gecamines brought to the deal, according to the document seen by Reuters.
Sinohydro Corp and China Railway Group Limited had agreed to build roads and hospitals in exchange for a 68% stake in Sicomines, the cobalt and copper joint venture with Congo's state mining company Gecamines.The commission said Congo should seek a 60% stake in Sicomines for Gecamines and its subsidiary, a non-dilutable 10% stake for the state, and 30% for the Chinese companies, to make the joint venture deal fairer for Congo.
In the initial deal, $3 billion had been earmarked for developing the Sicomines joint venture, and another $3 billion for infrastructure in Congo."We are going to ask for a lump sum compensation of $2 billion, among other things because Sicomines sold the minerals at half price to the Chinese companies ... well below the market price," the source said, adding that the fine will be for all damages Congo has suffered.
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