TENSION OVER GECAMINES' ATTEMPT TO PREVENT THEFT

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 -------------- ¶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