4 October 2007
The African Development Bank (AfDB) will contribute $100 million despite ongoing review into alleged irregularities associated with mining concession contract.
On Tuesday, the African Development Bank (AfDB) approved a $100 million investment in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo (DRC). The AfDB made the move despite appeals from civil society for public lenders to await the outcome of an ongoing government examination of 60 mining contracts, including the Tenke deal, before committing funds.
In May, the government of the DRC announced its intention to "revisit" mining contracts signed over the past decade, during the war and under the transitional government in place until last year’s national elections. The review process, which began in June, responds to concerns raised in various audits, independent studies and a DRC parliamentary commission report, regarding the fairness and legality of the contracts.
Civil society groups have argued that public lenders' decision to invest in the Tenke Fungurume mine appears to prejudge the outcomes of the government review process, or at least sends a clear signal about its expected results.
The European Investment Bank (EIB) and Overseas Private Investment Corporation (OPIC) have already approved €100 million and $250 million, respectively, in financing for the project.
The Tenke project, in which American company Freeport McMoRan (formerly Phelps Dodge) and Canada’s Tenke Mining together hold a majority stake, covers one of the largest copper-cobalt deposits in the world.
Resources
- Africa's AfDB bank lends DR Congo $100 mln, Reuters, October 3, 2007 (Reuters website)
- Civil society organizations call for public lenders to respect DR Congo mining contract review, Bank Information Center, July 11, 2007 (BIC website)
- EIB approves DR Congo mining project despite ongoing government review, Bank Information Center, July 20, 2007 (BIC website)
- The African Development Bank boost copper & cobalt mining in DRC: USD 100 million to the Tenke Fungurume Project, African Development Bank, October 3, 2007 (AfDB website)