. | . |
Global Witness wary over China, DR.Congo deal Kinshasa (AFP) March 8, 2011 Global Witness Tuesday criticised as opaque a $6 billion infrastructure-for-mining deal between the Democratic Republic of Congo and China, saying it could not be monitored. The ambiguity of the deal, never published by the parties, made it hard to measure whether its pledges were being met, the watchdog body said, also raising concerns about some provisions. DR Congo has promised Chinese state firms up to 10 million tonnes of copper and hundreds of thousands of tonnes of cobalt, it said in a statement. In return they will complete infrastructure projects including roads, railways, hydroelectric power stations, universities and health centres. The deal was first signed in 2007 and covered investment of $9 billion, roughly the same value as the Congolese budget at the time, Global Witness said. It was renegotiated in 2009, under pressure notably from the International Monetary Fund, to $6 billion, half for infrastructure and half for the mining sector. "The huge potential of a multibillion-dollar deal between the Democratic Republic of Congo and China risks being undermined because the agreement is opaque and key terms are ill-defined," the statement said. "Neither the Congolese nor the Chinese parties have properly explained how the minerals are to be priced, nor what infrastructure is to be built and at what cost. "This ambiguity makes it very hard to measure whether pledges are being met." "If you can't tell what's been promised, you can't tell whether it has been delivered, or even if you want it at all," campaigner Lizzie Parsons said. Global Witness also raised concerns about the destination of millions of dollars in a bonus payment and a clause seen in a leaked contract that exempts a mining company from any new law passed in the central African country. No consideration was given in the leaked version to social and environmental protection, it added. "China is striking similar deals across Africa. This agreement will be a revealing test case for whether these deals really will deliver mutual benefits to those who sign them," Parsons said.
Share This Article With Planet Earth
Related Links Global Trade News
Canada, U.S., not China, top mining deals Frankfurt, Germany (UPI) Mar 7, 2011 Many experts have warned of China's natural resources buying spree but a new report suggests that North American companies far surpassed their competitors from Asia in mining deals in 2010. Companies from Canada and the United States accounted for nearly 52 percent of global merger and acquisition activity in the mining sector, auditors PricewaterhouseCoopers said in a study released la ... read more |
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |