25 February 2007
Study to examine DRC mineral sector’s potential for growth, its ability to contribute to poverty reduction, the infrastructure investment needed to support private sector mining activity, and governance of the sector
The World Bank is conducting a new study of DRC's mining sector in collaboration with the African Development Bank and the DRC government. In contrast to previous reports by the Bank and some NGOs that were more narrowly focused, the study’s scope will include all mineral commodities and regions in which there is mining activity. The Bank envisions that the study will provide a “platform for continued dialogue between senior Bank sector specialists and the government, private sector companies and civil society,” but it is not yet clear whether draft and final versions of the study will be made public.
The study will be divided into the following chapters: 1) executive summary; 2) mining as a source of growth; 3) role of the artisanal and small scale miners; 4) large scale mining: role of Gecamines and other parastatals; 5) governance of the mining sector (including a review of legal framework, tax administration, corruption, and security forces active in the mining sector); 6) involvement of local communities; 7) physical bottlenecks to development of mining (discussing what infrastructure needs are for the expansion of mining sector); and 8) road map of future actions.
The chapter on large-scale mining will include an update on the status of parastatal restructuring, particularly that of Gecamines, the former state-owned copper company, as well as suggestions for future courses of action. The study will also summarize the legal and financial reviews of the contracts that have been conducted by consultant firms (such as Duncan Allen and Ernst & Young) and the DRC’s parliament through the Lutundula Commission.
With regard to the possibility of reopening some contracts to renegotiation, the study will “recommend possible options for the Bank to take in respect of advising the government on these contracts and outline the potential consequences of each option.” This chapter will also summarize activities of other private mining companies operating in DRC and make recommendations about what infrastructure investments or other steps should be taken to support the private sector.
Download the concept note for the study:
Suggestions regarding the Mining Sector Study should be addressed to:
Craig Andrews
Lead Mining Specialist, World Bank
Tel: (202) 473-4275