Sicomines (La Sino-Congolaise des Mines SA) is a major copper and cobalt mining joint venture operating in the Democratic Republic of the Congo (DRC). Established in 2008, the project was created under a significant resources-for-infrastructure agreement between the Congolese government and a consortium of Chinese firms. It focuses on developing the Dikuluwe and Mashamba West deposits located near Kolwezi in Lualaba Province.
Sicomines is 68% owned by a consortium of Chinese companies including China Railway Engineering Corporation, Sinohydro Corporation, and Zhejiang Huayou Cobalt, with 32% ownership held by Congolese state entities, primarily the state-owned miner Gécamines. The original deal involved a US$3 billion investment in mining operations and a further US$3 billion allocated for infrastructure projects, funded through loans from the Export-Import Bank of China. The repayments for these loans are structured to come from the revenues generated by copper and cobalt production. [1]
In September 2007, a memorandum of understanding was signed between the Congolese government and a Chinese consortium led by China Railway and Sinohydro, proposing Chinese financing of US$6 billion in infrastructure projects in exchange for access to mineral concessions, primarily the Dikuluwe and Mashamba West deposits. [1]
In February 2008, Katanga Mining transferred these deposits to Gécamines, enabling their contribution to the Sicomines joint venture. [2] The final agreement was signed in April 2008, officially creating Sicomines. [3]
In 2009, due to concerns from the International Monetary Fund about debt sustainability, the total commitment was reduced to US$6 billion, and a sovereign guarantee from the Congolese state was removed. [4]
Between 2010 and 2013, infrastructure projects including roads, hospitals, and a hydropower dam progressed significantly, with over US$800 million worth of public works delivered by 2013. [5]
Production at Sicomines began in November 2015, reaching commercial levels by mid-2016 despite power supply challenges. Infrastructure developments during this period included extensive road rehabilitation, new hospitals, and water supply facilities, significantly benefiting regional development and local communities.
Copper and cobalt production steadily increased, establishing the DRC as a leading global producer. In March 2024, a revised agreement committed an additional US$5.8 billion for infrastructure, introduced a 1.2% royalty on copper and cobalt sales, and set a flexible disbursement mechanism linked to commodity prices. [6]