business plans for small-scale mining in the democratic
TRANSCRIPT
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Business plans for small-scale mining in theDemocratic Republic of the Congo
CTC - training of mining cooperatives andstate services in the province of South Kivu
Nathalie Sterbik – [email protected]
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1) Mining in the DRC2) Artisanal and Small-scale Mining3) CTC-Project4) Needs for capacity building5) Need for attracting capital6) Example of the Kalimbi Mine7) Lessons learned
Contents
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Mining in the Democratic Republic of the Congo
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CTCProject area
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DRC depends heavily onits mining sector
55,8% of its GDP 77,3% of its goods exports 1/6th of formal employment
Mining in the Democratic Republic of the Congo
56%44% Mining
Others
Sha
re o
fth
eG
DP
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Cobalt65,6%
Diamonds 15,2%
Tantal21,5%
Copper3,4%
Tin1,4%
Gold0,97%
DRC share of the world
production (2012)
Abt. 28 bn USD
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900,000 people work in ASM (est. 8% of the Congolese populationdepends directly or indirectly on it)
80% of the tantalum and tin production, 95% of the diamonds(2005-2007)
Importance of Artisanal and Small-scale Mining in DRC
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18%
82%
MSM-LSMASM
Distribution of mining
employmentin DRC
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Poor OHS and working conditions
Low productivity
Difficult market access
Negative impacts on the social and natural environment
Still linked to armed groups and violence
Difficulties of the ASM sector in DRC
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The conflict minerals issue: 3T and Gold
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Project: Certified Trading Chains – a nationalcertification mechanism
Partners: Ministry of Mines, DRC; and itsrelevant departments and services in the Easternprovinces.
Goals (2009-2021):
Control of the Mining Sector in Eastern Congo Formalization and Legalisation of Artisanal Mining Increase of Tax Revenue from Mining Sector
Based on 5 principles: transparency andtraceability, working conditions, OHS, communitydevelopment and environment
BGR project in DRC
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Products(http://www.fairphone.com/)
CTC Compliant Mine in South Kivu (Kalimbi)
[Tin for Fairphone] Mine in Katanga (Mayi Baridi)
[Tantalum for Fairphone] Mine in North Kivu (Bibatama)
CTC Baseline audits 7 Audits since 2012 15 Audits in 2015
Nathalie Sterbik, BGRHannover, 13.11.2014
CTC Successes
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Occupational Health and Safety
Ventilation of underground workings
Roof and Ground control in underground workings
Drainage of underground workings
Mineral processing
Environment protection
Insufficient operational planning
Needs for capacity building for state services and cooperatives
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Business plans
Decision-making tools
Business plans
Decision-making tools
Clarify business idea and
goals
Clarify business idea and
goals
Plan to attain
objectives
Plan to attain
objectives
Weaknesses of the business
idea
Measure progress over time
Measure progress over time
Attracting capital for mining cooperatives via good business plans
Formalize into small-scale minesand increase their overall socio-
economic level
Seek financing through investors, banks or donors
Establish a course of activities
Make a general inventory of theirsituation
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Presentationof the
cooperative
Presentationof the
cooperative
Geographyand geologyof the mine
Geographyand geologyof the mine
Mining history andactivities
Mining history andactivities
Reservesand
resources
Reservesand
resources
Future developmentof the mine
Future developmentof the mine
Necessaryinvestmentsand returns
Necessaryinvestmentsand returns
Example of the Kalimbi mine
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Training well received by participants
Overestimation of turnover and underestimation of capital and operating costs
Insist more on cash flow planningLack of knowledge about quantity and quality of the
reserves/resources
Offer support in prospecting and explorationLack of understanding of commodity price fluctuations and investment
conditions, as well as sustainability
More training about mining economy relevant issues
Lessons learned for the BGR
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Business plans are an important first step for mining cooperatives in order to develop business ideas and to attract capital
Holistic business plans generate possibilities to include safety and environmental aspects early in the planning
Improvement of ASM planning capacities and increase of self confidence
Build trust between the different actors (gov. services, NGOs, ASM sector, banks) especially for DRC
Sensitize local microfinance institutions to issues of ASM
Create opportunities for investors, banks or donors
Provide transition possibilities to other livelihoods
Conclusion and outlook
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Thank you for your attention!
Contacts:[email protected]@[email protected]
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Berke C., Martin N., Pulkowski J., Vasters J. and Wagner M.: Rohstoffe in derDR Kongo, Potenziale für die Entwicklung? Kfw Entwicklungsbank and BGR,2007, 111p
BGR: Vorkommen und Produktion mineralischer Rohstoffe – einLändervergleich, BGR Publications, 2014, 132p, available on www.deutsche-rohstoffagentur.de
Oxford Policy Management: The impact of mining in the Democratic Republicof Congo, Performance to date and future challenges, OPM with synergy,October 2013, 34p
SNL Metals & Mining: Raw Materials Data, Stockholm, databank, 2015UN Group of Experts: Final Report on the Democratic Republic of the Congo,
Letter dated 12.12.2013, Resolution 1533 (2004), 51pVasters J.: Problemanalyse des Artisanalen- und Kleinbergbausektors, BGR
internal report, 2010, 11pWorld Bank, forthcoming report on DRC, June 2015
References
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