• The DRC commissions a technical and financial audit of the Sicomines partnership covering 2008–2024.
• Sicomines has accumulated nearly $9 billion in debt to finance copper-cobalt mining and infrastructure.
• Audit results will determine debt repayment, dividend distribution, royalties, and future project decisions.

The Democratic Republic of Congo (DRC) initiated a technical and financial audit of the Sino-Congolese mining project Sicomines, the country’s flagship copper-cobalt partnership with Chinese firms China Railway, Sinohydro, and Zhejiang Huayou. The audit covers the program from its inception in April 2008 to the latest amendment in March 2024, the Agency for Oversight and Coordination of Collaboration Agreements (APCSC) announced on March 5.

Sicomines, jointly owned with 68% by Chinese companies and 32% by state-owned Gécamines, develops copper and cobalt on PE 9681 and PE 9682 permits in Mutshatsha, Lualaba province. The partnership finances infrastructure through mining revenues and includes government-led mineral resource certification.

APCSC appointed a consortium of ATF-PCSC/Mayer Brown for the audit and SRK Consulting for resource certification. Mayer Brown, an international law firm, advises on projects in energy and natural resources, while SRK Consulting specializes in mining, geological, water, and environmental consultancy.

The audit will assess resource use, contractual compliance, project execution, and adherence to environmental and sustainability standards. APCSC expects the review to produce a documented diagnosis and recommendations to improve governance and performance.

$1.5 Billion Allocated to Infrastructure

Since 2008, the Sicomines program has drawn criticism for opaque loans, investment allocations, and revenue management. The March 2024 amendment mandated the audit to clarify these issues. At program initiation, $1.5 billion in loans, including principal and interest, were committed to infrastructure, with $300 million initially unpaid and later disbursed post-amendment. According to the Congolese Agency for Major Works (ACGT), $1.277 billion is expected to reach infrastructure projects, though other costs remain unclear. AidData reported a $82 million loan to Gécamines, with unspecified interest. Eximbank China loans carry floating rates linked to international markets, plus 1%, repayable over 25 years with a 10-year grace period.

The International Monetary Fund (IMF) highlighted limited transparency in project selection and cost execution. “In 2022, only $888 million of loans for infrastructure had been disbursed; information on execution remains scarce,” the IMF reported in July 2024.

$9 Billion in Total Debt

While the agreement planned $3.2 billion for mining investment, AidData shows Sicomines accrued $7.61 billion in debt between 2008 and 2020. The first Eximbank China loan ($2.13 billion, 6.1% fixed rate, 25-year maturity, six-year grace) and second loan ($2.61 billion, floating rate +3%, 25 years, 10-year grace) finance mining development. Chinese shareholders provided $1.07 billion interest-free in 2008 and $1.77 billion at a floating rate +2.7% later.

Revenue from mining must first repay loans, with remaining proceeds allocated to dividends. Sicomines began production in 2015, reaching full capacity with 246,000 tonnes of copper exported in 2024. AidData flagged loan defaults but provided no full overview. Infrastructure loan repayments totaled $441.1 million by end-2020, with $658.78 million remaining at December 31, 2021.

Audit outcomes will clarify debt levels, repayment progress, and revenue allocation, directly influencing Sicomines’ shareholding structure, royalty payments, and dividends. The 2024 amendment links further project development to audit results, full mineral resource certification, and updated feasibility study approval.

Pierre Mukoko and Boaz Kabeya (Bankable)