Gécamines
Encyclopedia
Gécamines, or La Générale des Carrières et des Mines, is a state-owned mining company in the Democratic Republic of Congo (DR Congo). Its principal products are copper
(for which Katanga is well known, and which often accounted for 50% of export earnings), cobalt
and zinc
. Additional minerals mined include uranium
.
. On December 31, 1966, the Congolese government, under dictator Mobutu Sese Seko
, took over the UMHK, an immensely profitable Belgian
mining trust founded on 1906, and transformed it into a state-owned firm, Gécamines. From that point onwards the company's fortunes declined, as did those of the rest of the country (between 1965 and 1987, Congolese GDP per head fell by 2.4%).
Under President Mobutu's kleptocratic rule, theft and corruption were not uncommon, driving the once profitable firm to the brink of bankruptcy (it has yet to account for a $400 million World Bank loan in 1989), and leaving it so cash-stripped that it had to enter partnerships with other firms merely to keep itself afloat. One Gécamines official estimated theft to amount to 10% of production. Nonetheless, the company remained crucial to Congolese finance: In 1989, Gécamines provided 85% of DR Congo's export earnings (against 60% provided by the UMHK in 1960), and 42% of public revenues, making it by far the most important company in the country.
In the 1990s, Gécamines' financial situation took a blow, adversely affected by several issues, including the ageing of infrastructure and equipment, collapse of the mine of Kamoto, and ethnic riots in Shaba
. These led to a slump in production, as can be seen in the copper production chart below.
Despite these unfortunate figures, it must be remembered that Gécamines is still in possession of proven, probable, and possible ore reserves of copper (56 Mt contained metal), cobalt (4 Mt), and germanium (3.4 Mt), and zinc (6.4 Mt). With assistance from the World Bank, aided by partnerships with other firms and by proper governance in DR Congo, Gécamines hopes to resume its former copper production.
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
(for which Katanga is well known, and which often accounted for 50% of export earnings), cobalt
Cobalt
Cobalt is a chemical element with symbol Co and atomic number 27. It is found naturally only in chemically combined form. The free element, produced by reductive smelting, is a hard, lustrous, silver-gray metal....
and zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
. Additional minerals mined include uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
.
History
Gécamines is the successor to the Union Minière du Haut KatangaUnion Minière du Haut Katanga
The Union Minière du Haut Katanga was a Belgian mining company, once operating in Katanga, in what is now the Democratic Republic of the Congo...
. On December 31, 1966, the Congolese government, under dictator Mobutu Sese Seko
Mobutu Sese Seko
Mobutu Sese Seko Nkuku Ngbendu wa Za Banga , commonly known as Mobutu or Mobutu Sese Seko , born Joseph-Désiré Mobutu, was the President of the Democratic Republic of the Congo from 1965 to 1997...
, took over the UMHK, an immensely profitable Belgian
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
mining trust founded on 1906, and transformed it into a state-owned firm, Gécamines. From that point onwards the company's fortunes declined, as did those of the rest of the country (between 1965 and 1987, Congolese GDP per head fell by 2.4%).
Under President Mobutu's kleptocratic rule, theft and corruption were not uncommon, driving the once profitable firm to the brink of bankruptcy (it has yet to account for a $400 million World Bank loan in 1989), and leaving it so cash-stripped that it had to enter partnerships with other firms merely to keep itself afloat. One Gécamines official estimated theft to amount to 10% of production. Nonetheless, the company remained crucial to Congolese finance: In 1989, Gécamines provided 85% of DR Congo's export earnings (against 60% provided by the UMHK in 1960), and 42% of public revenues, making it by far the most important company in the country.
In the 1990s, Gécamines' financial situation took a blow, adversely affected by several issues, including the ageing of infrastructure and equipment, collapse of the mine of Kamoto, and ethnic riots in Shaba
Katanga Province
Katanga Province is one of the provinces of the Democratic Republic of the Congo. Between 1971 and 1997, its official name was Shaba Province. Under the new constitution, the province was to be replaced by four smaller provinces by February 2009; this did not actually take place.Katanga's regional...
. These led to a slump in production, as can be seen in the copper production chart below.
Operations
Production of copper, by year.- 1989: 440,848 tons of copper, 54,043 tons of zinc.
- 1990: 376,000 tons of copper.
- 1991: 240,000 tons of copper, 30,000 tons of zinc, 9,800 tons of cobalt.
- 1994: 32,412 tons of copper, 2,515 tons of zinc, 3,631 tons of cobalt.
- 2001: 27,507 tons of copper, 3,463 of cobalt.
- 2002: 21,186 tons of copper, 828 tons of zinc, 1,780 tons of cobalt.
- 2003: 16,172 tons of copper (8,000 tons of refined copper), 1,200 tons of refined cobalt.
Despite these unfortunate figures, it must be remembered that Gécamines is still in possession of proven, probable, and possible ore reserves of copper (56 Mt contained metal), cobalt (4 Mt), and germanium (3.4 Mt), and zinc (6.4 Mt). With assistance from the World Bank, aided by partnerships with other firms and by proper governance in DR Congo, Gécamines hopes to resume its former copper production.
Mines
- Kakanda/Kambove mines (copper and cobalt), jointly with the International Panorama Resources Corporation
- Kamfundwa mineKamfundwa MineThe Kamfundwa Mine is one of the Kambove mines in the mining region around Kambove, Katanga Province, Democratic Republic of the Congo.It is near the Shangulowé Mine, about north of the Kamoya mine district.-Secret mine:...
(copper) jointly with the Harambee Mining Corporation and Sogemin - Kipushi mineKipushi MineKipushi Mine is an underground mine in the Democratic Republic of the Congo, near the town of Kipushi in the province of Katanga. The was an active producing mine between 1925 and 1993, as of 2006 there was an estimated 16.9 million tons of ore in the measured and indicated categories, with a...
(copper, gold and zinc) jointly with Adastra MineralsAdastra MineralsAdastra Minerals Inc , was a London-based mining company with notable operations in central Africa , particularly in copper, cobalt and zinc exploration...
and the Zinc Corporation of SA Ltd - Kolwezi mine (copper and cobalt)