Covid-19 takes a dig at DRC mining plans

The Democratic Republic of Congo (DRC) has been facing significant challenges due to the global pandemic, with the DRC Mining Week, originally scheduled for June, now postponed to October 7, 2020. In an exclusive interview with CNBC Africa, Elodie Delagneau, the event director, provided insights into the current situation in the mining sector in the DRC and how the industry is adapting to the crisis. The mining sector in the DRC plays a crucial role in the country's economy, with 20% of the national budget dependent on mining. However, the decrease in demand from key markets like China and Zambia has forced the DRC to diversify and strengthen other sectors of its economy. The impact of the pandemic has been particularly hard on small and medium-sized enterprises (SMEs) and entrepreneurs who rely on mining activities for their livelihoods. The fluctuation in copper prices, currently below $5,000, also poses a challenge to mining operators in the country. Despite these challenges, there are signs of resilience and innovation within the sector. Some mining companies are adapting to the new normal by implementing remote testing of equipment, conducting virtual conference meetings, and holding online auctions and tender processes. This shift towards digitalization and automation is seen as a necessary step to ensure health and safety in the industry. Major players in the DRC, such as Glencore and Barrick, have been actively supporting the economy and communities during this time. Glencore launched a $25 million fund to assist countries where they operate, while Barrick contributed $1.5 million to support initiatives in Zambia. The safety and well-being of employees are also a top priority for mining companies in the DRC. Mines have implemented strict health protocols, with employees confined to the sites and monitored closely. Despite the challenges, there is a sense of optimism within the industry, with some companies exceeding their production targets and planning for future growth. However, the fate of informal and small-scale miners remains uncertain, as they lack the resilience of larger operators. The upcoming DRC Mining Week in October will focus on addressing the impacts of the crisis and shaping the future of the industry. While the event may have to adapt to the new normal, discussions on digitalization and innovation will be at the forefront. The industry is looking towards building a resilient community that can thrive in a post-pandemic world. As the sector continues to navigate through these challenging times, the priority remains the safety and well-being of all individuals involved.