C O N F I D E N T I A L KINSHASA 001735

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/13/2016
TAGS: EMIN ETRD ECON KCOR PGOV CG
SUBJECT: TENSION OVER GECAMINES' ATTEMPT TO PREVENT THEFT



1. (C) Tension over efforts to stop natural resource theft
nearly resulted in violence in Kolwezi, Katanga province,
over the November 3 weekend. November 2, the CEO of
Gecamines, the DRC's copper/cobalt mining parastatal, told
Gecamines employees in Kolwezi that the ongoing theft of
copper/cobalt concentrate must cease, as it was "impeding the
relaunch" of Gecamines. Fortin told EconOff he had received
numerous reports of theft of substantial quantities of
concentrate from Gecamines' Kolwezi concession, and that the
product is exported to Zambia for processing. He believes
Gecamines employees are colluding in the theft with various
government security services in the area.


2. (U) The weekend after Fortin's visit, Gecamines security
service (also known as Industrial Police) stopped and seized
three unauthorized trucks trying to exit Gecamines'
concession with concentrate. The seizure sparked a
confrontation between Gecamines' and government security, the
latter described by media and various EconOff contacts as
military police, national police or Presidential Guard
(GSSP). Both sides fired numerous shots in the air, but no
injuries or further confrontations were reported.


3. (SBU) To attempt to diffuse the situation further, Fortin
returned to Kolwezi November 8, accompanied by the Katanga
Governor, Kisula Ngoyi. They discussed the situation with a
variety of local leaders, including the Mayor, law
enforcement officials and government security service chiefs.
According to Fortin, Governor Ngoyi said he will make a
public inquiry into the incident. Fortin also told Econoff
that despite the confrontation, Gecamines' staff will
continue to stop and search exiting trucks.

Comment
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4. (SBU) This Kolwezi incident is yet another example of the
growing tension in the mining sector as it becomes
increasingly formalized. Efforts to stem smuggling and other
forms of corruption will often unfortunately be met by
resistance. End summary.
MEECE