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Summary
- Sama Lukonde Kyenge, the CEO of state-owned Gecamines, has been named as the new Prime Minister of the DRC.
- President Tshisekedi is expecting to build a more loyal cabinet to push forward his policies and reforms.
- Many ASX-listed players have operations in the mineral-rich African nation.
Sama Lukonde Kyenge is the new Prime Minister of the Democratic Republic of the Congo (DRC). Until early this week, he was the head of state-owned mining company, Gécamines. The 43-year-old newly elected Prime Minister has also served as a representative to the parliament and a former youth and sports minister.
Former prime minister Sylvestre Ilunga Ilunkamba resigned on 28 January 2021 due to a motion of censure passed against his administration by the parliament. He is a close ally of Joseph Kabila, the former president of the African nation.
The Rift between Tshisekedi and Kabila
After being elected as the DRC President in 2018, Tshisekedi had allied with former president Joseph Kabila, as he didn’t score a major win. However, the disagreement between Tshisekedi and Kabila compelled Tshisekedi to end the coalition and form his own Sacred Union with over 20 parties.
Tshisekedi was elected based on the promises made by him to clean up corruption, which reportedly flourished under the previous government. It has been reported that Tshisekedi was not able to implement his policies and reforms as most of the country's government institutions were under the hold of Kabila's followers and supporters. He has accused Kabila’s supporters of blocking his policies and agenda.
The appointment of Kyenge by DRC President Felix Tshisekedi comes after long political fights. The move is reportedly aimed at making the parliament more favourable towards the leadership of Tshisekedi.
Good Read: Glencore Copper and Cobalt Production Slumps Over Congo Mine Closure
Reshuffling at Gécamines
In early February 2021, Gécamines reshuffled the upper management, including secretary-general and other senior positions, to curtail former president Kabila's influence. The move also enabled Tshisekedi to hold more authority over the company.
DRC is the world’s leading copper producer and largest miner of cobalt, a key material for lithium-ion batteries used in electric vehicles. Gécamines controls minority stakes in the country’s most significant mining projects.
The move indicates that Tshisekedi is planning to increase the stake of Gécamines in cobalt and copper mining projects to boost the country’s revenue to support social reforms amid the COVID pandemic.
Must Read: Why is Copper at a New Seven-Year High?
ASX Miners in the DRC
Here are a couple of ASX-listed players with operations in the DRC.
AVZ Minerals Limited (ASX:AVZ) operates the Manono lithium-tin project located in the DRC.
The company recently reported strong results from a mineral resource drilling, with four drill holes at Roche Dure intersecting significant grade of lithium and tin mineralisation.
Red Mountain Mining Limited (ASX:RMX) operates the Mukabe-Kasari Copper-Cobalt Project in the prolific copper-cobalt belt of the DRC.
