The Mining Funds for Future Generations (FOMIN) was among the topics discussed during the second day of the “mines and hydrocarbons week” organized by civil society, grouped within a synergy of action for the protection, monitoring and citizen control of the natural resources of the Democratic Republic of Congo.
Gérard Ntambwe, expert and consultant in natural resources, explained to members of civil society the importance of this fund set up by the legislator of the revised mining code in 2018.
“Mineral resources are exhaustible and non-renewable. It is for this reason that the legislator of the 2018 mining code introduced the innovation of the creation of the Mining Fund for Future Generations (FOMIN). This is one of the answers to the problems non-renewable natural resources”, said Gérard Ntambwe.
Given the exhaustibility of mineral resources, Gérard Ntambwe believes that FOMIN is of great importance to sustain our minerals through financial income.
“The FOMIN is important because it is a public establishment which is responsible for financing geological research. The DRC has more or less 1,200 mineral indications, only a dozen are exploited. The FOMIN could allow through its research to sustain our mining sector. There is obviously the intergenerational savings part. The investments that FOMIN will make in both public and private companies could transform the mining rent into financial rent. The mining rent is very limited in time whereas the financial rent could be in perpetuity,” he said.
He reassured, on the basis of his calculations, that the FOMIN can reach 100 million USD in annual revenue for future generations on the condition of good management.
“Among the sources of financing for FOMIN, the most important is the 10% quota of the mining royalty. When you do a little calculation taking the current assumption of copper and the level of production, it gives no less than 60 million If it is necessary to project in 2024 where the DRC has more chance to exceed 3 million tons of copper, there is reason to think that the FOMIN can reach 100 million of the receipts per year for the future generations “, a-t -it signifies.
The big challenge
The DRC must ensure the proper management of its natural resources by establishing honest governance within the FOMIN.
“We must meet the challenges of the old demons. We must meet the challenge of the governance of this fund. We need governance aligned with the transparency, control and management of sovereign funds”, advocated Gérard Ntambwe.
FOMIN was created in 2019. It was in 2021 that it was endowed with its leaders. Its main mission is to build up material and/or financial wealth in kind or in cash, to guarantee post-mining for future generations.
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