Reuters reported that Congolese state mining firm Gecamines has refused a request from the mines ministry to publish all revised contracts, saying it cannot do so without the permission of firms involved.
The refusal is likely to dent a donor push to increase transparency after Congo in May appeared to bow to International Monetary Fund and World Bank pressure to publish all mining contracts in an effort to clean up its murky extractive industries sector.
Mr Kalej Nkand CEO of Gecamines said that the firm did not usually publish its contracts and confidentiality clauses with its joint venture partners could lead to legal problems if it did so. The proposed publication of these contracts has no legal basis. It is doubtful that our partners would consent to it.
Gecamines has a number of copper and cobalt joint ventures with partners that include Freeport McMoRan, Lundin Mining, ENRC, Glencore owned Katanga Mining and South Africa's Metorex.
Mr Martin Kabwelulumines minister of Congo said that he did not think the letter constituted an all out refusal of his request.
Meanwhile, IMF country representative Mr Samir Jahjah said that he understood that the government still intended to publish contracts in the oil and mining industries. Fund staff treat the confidentiality of information as a serious matter and we will assess what implications it means for the program referring to a broader program at improving transparency in Congo's extractive industries which have traditionally suffered from rampant corruption.
The IMF last month raised with the government its concerns over the lack of transparency surrounding a sale of mining rights by SODIMICO another state miner. Congo has carried out a review of all of its mining contracts since 2007. One miner, First Quantum, did not successfully renegotiate its contracts and its licences were revoked.
The resale of First Quantum’s assets despite ongoing court cases and further questions over the management of the sector has led to calls for greater transparency. The transparency rules are part of a governance program applying to all state enterprises operating in the mining sector.
Last month Mr Albert Yuma president of the board of Gecamines said that the company was not bound by these rules after it was converted into a commercial venture last year, despite the fact that the Congolese state is the sole owner.
(Sourced from Reuters)
