Congo (DRC)

Congo Democratic*** and State (formerly known as Zaire*** and State), abbreviated as Congo (DRC). The capital city of Kinshasa. Located in the central part of the African continent, on the east coast of the Atlantic Ocean, the equator crosses the northern part, about 1300 km long. 2190 km north-south, 2110 km east-west, the land edge is about 9375 km long, east of Uganda, Rwanda, Burundi, Tanzania, north of Central Africa, Sudan, west of the Angolan enclave of Cabinda, Congo (Brazzaville), south of Zambia, Angola, is called the "shelf-locked country". With an area of 2.345 million km2 , it is second only to Sudan and Algeria in Africa.

Population 55 million, Bantu people account for about 84%. The official language is French. The national languages are Congolese, Lingala, Swahili and Luba. The majority of Congolese practice animism, Christianity, and a small minority practice Kimbangu, Islam, and primitive religions.

The northern part of the DRC has an equatorial climate with high temperatures, humidity and rain. The south has a savannah climate, with two seasons a year and alternating dry and rainy seasons. The eastern part is at a higher altitude and has a mild climate. The average annual rainfall is 1,500 to 2,000mm, and the average annual temperature is 27℃.

The coastline is 37km, and there are three ports along the coast, Banana, Boma and Matadi, with Matadi as the main seaport, with five regular routes to Northern Europe, France, the Mediterranean Sea, the United States, and Japan, and an annual throughput of more than 800,000t. Kinshasa Ndjili International Airport connects to major continents in the world, and there are also four international airports in Kinshasa, Lubumbashi, Kisangani, and Goma, as well as 35 general airports and more than 100 small airports with landing strips. It has six foreign airlines with offices in Belgium, Cameroon, Kenya, Angola, Guinea and Ethiopia, and two domestic airlines, LAC and CAL, with approximately 27,000km of intercontinental routes, 14,000km of African routes and 39,000km of domestic routes. The border town of Dilolo connects to Lobito in Angola, Kalemie to the port of Das in Tanzania, Sakania to Zambia, Goma to Rwanda, Aru to Uganda, Zongo to the Central African Republic, and the Ngobila Marina in Kinshasa connects to Brazzaville in the Congo. There are 150,000 kilometers of roads, 85% of which are actually dirt. The length of the railroad is about 5,254km, of which the Kinshasa-Matadi main line is 365km. the annual design capacity is 6 million tons, but at present the actual capacity is only 1.2 million tons. the total length of the country's rivers is 23,000km, of which 15,000km can be navigated by ships of 150-400t and 2,785km can be navigated by ships of 800-1000t.

Kinshasa (capital), Lubumbashi (capital of Katanga province), Kisangani (capital of Orientale province), Bandundu (capital of Bandundu province), Goma (capital of North Kivu province), Bukavu (capital of South Kivu province), Kindu (capital of Maniema province), Mbandaka (capital of équateur province), Kananga (capital of Kasa?-Occidental province), Mbuji~Mayi (capital of Kasa?-Occidental province), Matadi ( capital of Bas-Congo province).

National income per capita is US$127.

Currency: On June 30, 1998, the DRC issued a new currency, the Congolese franc. At that time, the official rate of exchange: 1 Congolese franc = 100,000 new Zaire, 1 US dollar = 3 Congolese francs. As a result of the civil war, the economy deteriorated, with negative growth of about -3.5% in 1998 and a record low of -14% in 1999. By April 2001, the official rate was 1 dollar = 53.5 francs and the parallel market rate was 1 dollar = 230 francs. Inflation surpassed the 500 percent mark.

In the 14th century, the Bantu people established the Kingdom of Congo in the lower Congo River. 15 to 18 centuries, Portugal, the Netherlands, Britain, France, Belgium invaded. 19 centuries, the King of Belgium designated it as a "private land". 1956, the nationalists launched the independence revolt. 1960 June 30, the Congo (Li) *** and the State was established. On June 30, 1960, the Congo (Liberia)** and the Congo (Liberia) were established. Kasavubu was the first president and Lumumba was the first prime minister. on November 24, 1965, Mobutu came to power and set up the Second **** and State. in 1971, the name of the country was changed to the State of Zaire **** and State. on May 17, 1997, the AFDL under the leadership of Kabila overthrew Mobutu's regime, and set up the Third **** and State, which was renamed as the Democratic **** and State of Congo.

Congolese-Congolese diplomatic relations: China and Congo established diplomatic relations on February 20, 1961; the two countries broke off diplomatic relations on September 18 of the same year, and on November 24, 1972, diplomatic relations were resumed.

Head of state: President Joseph Kabila.

Ruling party: Alliance of Democratic Forces for the Liberation of Congo (AFDL).

Political system: a bicameral and presidential cabinet system, based on the draft constitution of the Third **** and State.

I. Mineral resources

The DRC is rich in mineral resources, especially copper (evaluation time is long, must be re-evaluated), cobalt, diamond reserves ranked among the world's top (Table 1), and other minerals there are oil, natural gas, coal, zinc, gold and so on.

Table 1 DRC mineral reserves

Two, mining production

In the past, the DRC mining output accounted for about 25% of the gross domestic product (GDP). In recent years the DRC has been affected by the civil war, and mining production has been unstable, even leading to the decline and stagnation of certain mineral production, with mining output declining by an average of about 5% per year after 1996, and accounting for only 6% of GNP in 2000.Mineral production since 1997 is shown in Table 2, with the main minerals being crude oil, copper, cobalt and diamonds. Jika Mining is the country's largest mineral producer, controlling national production of coal, copper, cobalt and zinc. Due to the civil war that devastated the production, Jica Mining has been using the mechanism of bringing in international venture capital to participate in the exploration and production of the country's minerals since 1998.

1. Oil

Crude oil production in 2002 was reported (Oil Gas Journal, December, 2002) to be 1.146 million tons, down 43.97% from 2001's 2.0455 million tons.

Democratic Congo's Chevron Texaco (50% in the U.S.), Teikoku (32.3% in Japan), and Unocal (17.7% in the U.S.) are the main producers of oil in the DRC, with about 1.583 million tons of crude oil from eight wells off the coast in 2001, accounting for 77.39% of the country.In 2002, the Democratic Republic of Congo Chevron Texaco developed 1 well in the Tshiala field (Tshiala) and completed the cataloging of 5 wells, the Libwa field (Libwa, 1), the Lukami field (Lukami, 1), the Misato field (Misato, 1), and the GCO field (2). Its main refinery, Muanda, has a production capacity of 2.3mt/a.

Estimated that Shell's remaining reserves of more than 4.43mt in the fields near the mouth of the Congo River, where production began in 1980, are the East Mibale, Liawenda-Kinkasi and Muanda Banana fields. Muanda Banana) six oil fields in three regions.

Other oil companies working with the DRC, including Japan National Oil, Canada's Pan African Energy, and Shell-Lirex, have yet to receive government approval for survey and transfer rights.

Table 2 DRC mineral production

2. Copper and cobalt

Gecamine is the most important copper and cobalt producer in the DRC, producing 19,495t of copper in 2002, down 5.46% from 20,621t in 2001, and 2,209t of cobalt, down 3875t in 2001. 42.99%. In 2002, Malta Forest Group, Outukumpu Mining Group and Societe des Terris de Lubumbashi, a venture organization in which Gika Mining participates, produced 1,298t of copper and 1,930t of cobalt oxide. The Lwishishi concentrator, created with the participation of Gika Mining and Forrest Metals Group, produced 5,597 tons of copper (metal content in concentrate) and 5,499 tons of cobalt (metal content in concentrate) in 2002, compared to 1,2236 tons and 5,506 tons in 2001, respectively, and was purchased by the Otto Kump Mining Group (OMG). Socio-political problems, wars, and looting were the main reasons for the decline in mine production, and poor management, lack of capital, lack of energy, and outdated transportation facilities led to overloading of the mines. Jica Mining has taken a number of salvage measures, including closing down loss-making factories and restoring links with international agencies. The World Bank recently agreed to provide $45 million to help with the 10,000 redundant employees.

Other major state-owned producer, IndustriALL Congo's Sodimco, is experiencing similar problems, with estimated reserves of 2.4 million tons of copper at an average grade of 3 percent Cu at its two mines, Musoshi and Kinsenda.

American Mineral Fields (American Mineral Fields), Anglo-American (Anglo-American) and Gika Mining risk organization Congo Mineral Development (CMD) intends to use the tailings of the Kolwezi mine (Kolwezi) to produce copper and cobalt, tailings reserves of 112 million tons, the average grade of Cu1.48%, Co0.32%, the first phase of the project capacity of 42,000t / a copper, cobalt 0.7 million t / a.

Phelps Dodge (Phelps Dodge) and Australia's BHP agreement *** with the undertaking of exploration Tenke Fugurume (Tenke Fugurume) project, the estimated reserves of 547 million tons of ore, the average grade of Cu3.3%, the average grade of cobalt, cobalt, cobalt, copper and cobalt. grade Cu3.5%, Co0.27%, once mined, production capacity of up to 100,000t/a of copper, cobalt 0.7 million tons / a.

First Quantum Minerals (First Quantum) owns 51% of the control of the tailings dams of the mines of Likasi (Likasi) and Kingamiambo (Kingamiambo). It plans to develop the Dikulushi copper-silver mine, which has an estimated ore reserve of 1.9 million tonnes at an average grade of 8.6% Cu and 266g/t Ag, and will initially be sent to the Mufulira concentrator in Zambia to produce a concentrate.

3. Zinc

January 2002, the United States Fields Minerals (American Mineral Fields) company and Zincor (Zincor) reached a unanimous agreement, Zincor is Kumba Resources (Kumba, formerly known as the Esco (Iscor), *** with the management of the resumption of production of zinc mine (Kipushi), which is managed by the Kipushi (Kipushi). ) zinc production, the mine began production in 1929 1993 basically stopped production, 1994 to 2000 average annual zinc production of 1,700t. production capacity study report shows that the capacity can reach production of zinc concentrate 10t / a (metal), life expectancy of 20 years. The mine has 17 million tons of ore reserves in the 1150-1500m level section, with an average grade of Zn16.7% and Cu2.23%; 9 million tons of ore reserves in the 1500-1800m level section, with an average grade of Zn23.3% and Cu1.93%.

4. Gold

Gold is found in many areas, most notably in the Upper Congo region. The government has no control over gold mining and production, as rebels control the eastern part of the country. no production was reported in 2002.

In the past, Banro Resources (Canada) controlled 93% of Sagima (established in 1997, including gold, tin, and tantalum mining rights in the area under its control), with the government controlling 7%, and the area under its control covered 10,271km2, with 10 permissible mining areas and 47 transferable areas. As a result of the war, gold mines southwest of Bukavu in Kivu province, including Kamituga-Mobale, Lugushwa, Namoya, and Twanziga, were forced to close in 1997. Banro Resources Canada filed a lawsuit, which the government lost, and on April 18, 2002 returned 100% of Banro Resources' property rights in Kamituga, Lugushwa, Namoya, and Twanziga, and resumed production for the customary 30 years.

South Africa's Anglo Gold Corporation and Canada's Barrick Gold Corporation and other venture development companies control the Kilo-Moto gold field in the northern Bunia region of the Democratic Republic of the Congo (DRC) of the 57,000km2 of exploration rights, due to the war in 2000-2001 did not carry out exploration work.

5. Diamond

According to reports (Mining Journal Ltd., 2003), production in 2002 was 21.7 million ct, up 19.23% from 2001, and valued at US$396 million.

The DRC is one of the world's major diamond producers. The largest diamond-rich areas are spread from Mbuji Mayi in Kasai Oriental to Tshikapa in Kasai Occidental and Kisangani in the Haut Congo district. The main miner, Miniere du Bakwanga (Miba), is 80% state-owned and 20% owned by the Belgian company Sibeka, which has begun negotiations for the restoration of 35% of the Senga mine, which is estimated to hold 35 million ct of reserves. There are also a number of small-scale miners and operators. The government recently authorized seven trading sites and also introduced international rules for finding kimberlite barrels, working against smuggling in war zones.

6. Trade in minerals

The DRC joined GATT in 1971 and became a member of the WTO in 1995. Has signed bilateral economic and trade agreements with 44 countries in the world (including China), participated in the Central African countries economic **** the same body and other 9 regional organizations, but also participated in the International Tin Association and the ACP and other 14 international and multilateral economic and trade organizations. The main mineral trade objects are the United States, Belgium, France, Germany, Japan and South Africa.

III. Mining Policy

1. Mining Law

The government of the Democratic Republic of the Congo (DRC) enacted a new mining law on July 11, 2002 in order to further promote the development and exploitation of mineral resources in the country. The main contents of the exploration license are:

(1) The term of the exploration license is 2 years, and it can be renewed 3 times for a maximum of 2 years each time.

(2) Generally the same person shall not be granted more than 20 exploration licenses.

(3) the following conditions can be renewed: (1) proof of compliance with the contract during the previous survey; (2) the submission of a technical report on the previous survey work, accompanied by detailed drawings and information; (3) the submission of preliminary work and the corresponding cost plan; (4) the responsible official's approval of the technical report and plan of work.

(4) Within the area of the exploration license, the license holder has the right to obtain a mining license or a concession license after fulfilling the relevant regulations.

The main contents of a mining license are:

(1) A mining license allows the license holder the exclusive right to engage in all exploration, census and mining activities of the mineral resources belonging to the license granted within a defined surface area and unlimited depth.

(2) A mining license also grants the licensee the right to engage in all mineral-related activities such as beneficiation, smelting, processing, chemical treatment and so on.

(3) A mining license is granted for a period of five years and may be renewed for a maximum of three times, each time also for a period of five years, after the fulfillment of lawful and prescribed obligations during the previous period of validity.

(4) A mining license shall not be granted in the following cases: (1) failure to carry out the obligations defined in the exploration license or in the scope of the mining license; (2) failure to discover a mineable deposit; (3) failure to submit a plan of production and investment corresponding to the size of the deposit, a plan of activities in relation to the exploitation goals set by the Executive Committee, and failure to determine adequate technical and financial means for the implementation of the plan.

2. Law on Encouragement of Investment

The Investment Law of the DRC arose in 1986. This law is currently under revision. The investment law provides for three preferential regimes: ① General Preferential Regime. Anyone who invests not less than 10 million zakat (the amount of the old zakat, the same below. Enterprises with an investment of not less than 10 million zakat (the amount is the old zakat, the same hereinafter. Appropriate adjustments may be made in accordance with changes in purchasing power), if the investor is a foreigner, if 80% of the total amount of the investment is of foreign origin, and if less than 70% of the investment is borrowed, may apply for the General Incentive Scheme, which provides them with exemption from the proportional registration tax or the fixed tax, the tax on income from dividends (for a period of five years), the tax on the occupancy of plots of land (for a period of five years), the customs tariff on imports of equipment, materials, spare parts, etc., and the tax on wages ( Exemption period depends on the number of employees, ranging from 1 to 5 years), to help localize the cadres of foreign personnel, to be exempt from personal income tax (exemption period of 5 years), to help balance the balance of payments of exports, to be exempted from export tariffs, foreign enterprises located in foreign provinces, to be exempted from local taxes (exemption period of 5 years). ② Agreement Preferential System. Any investment that meets the requirements of the above general preferential system, if it is of great significance to the development of the country and society, and if the investment is particularly large (more than 500 million zakat), it can apply for an agreement to enjoy the preferential system. In addition to the general preferential treatment mentioned above, the DRC grants exemptions and reductions on a variety of direct and indirect taxes and other additional taxes for a period of 10 years. For details, please refer to the Investment Law of the DRC.

3. Tax Administration Law

The D.R.Congo regards tax policy as one of the macro-control instruments, aiming at increasing the revenue of the state treasury and reducing the budget deficit. Taxes in the DRC are as follows:

Direct Taxes:

(1) Property Taxes

(1) Land Taxes (under revision); (2) Land Taxes on Mining, Forestry and Petroleum Areas (to be determined); (3) Vehicle Taxes (under revision).

(2) Income Taxes

①Tax on Rental Housing (35%); ②Tax on Real Estate (20%); ③Tax on Professional Activities.

A. Corporate Profit Tax (40%) B. Freelance Fixed Tax (35%) C. Wage Income Tax (35%) D. Special Tax on Expatriate Wages (33%)

Indirect Taxes:

(1) Customs Duties

①Import Duty ranging from 5% to 30% (+ Import Sales Tax ranging from 3% to 13%, etc. + Statistical Duty + Quotations Tax + Penalties, etc. ); ② export tax ranging from 0.7% to 10% (+ export sales tax ranging from 0.25% to 3% + statistical tax + penalties).

(2) business tax

① sales business tax (3% + 13% varies); ② service business tax (6% + 18% varies); ③ building business tax (18%).

(3) Industrial Promotion Tax

(4) Municipal Tax, etc.

4. Business Registration Law

The following procedures are required to form a company in the DRC: ① notarization of the articles of incorporation by a notary public in the municipal area of jurisdiction; ② registration of the commercial registration number in the court of jurisdiction; ③ registration of the commercial registration number of a foreign company, it is also necessary to open an account in a designated When the company is formed or reorganized, it is necessary to publish the articles of incorporation in the government's daily gazette, pay a fixed or proportional tax and registration fees; ⑤ if the company is a limited liability company, it is necessary to report to the President for approval and payment of a deposit; ⑥ apply for a national identification number in the Ministry of Economy and Industry; ⑦ register for the Importers and Exporters Directory in the Central Bank of the DRC; ⑧ apply for certificates of environmental protection licenses and other certificates in the Ministry of Environmental Protection and so on. Environmental protection license and other certificates.

5. Labor Management Law

The labor law of the DRC came into being in 1967, and was amended in 1989, which regulates the relationship between enterprises and workers from the time of hiring to the end of the contract. The main contents of the labor law are: (1) determination of wage levels; (2) hiring and dismissal procedures for workers; (3) the duration of vacation and leave of absence; (4) provisions for the suspension of the contract, the period of advance notice; (5) safety at the workplace; (6) medical expenses, transportation costs, and housing allowances. Concerning wages: The DRC government protects the minimum wage stipulated by law; workers are paid according to the stipulated wage grades; the wages of foremen and cadres are according to the contract signed between the enterprise and the individual. Wages do not include transportation costs, housing allowances, family allowances and medical expenses to be borne by the owner. With regard to the employment of foreigners, DRC law clearly protects the employment opportunities of nationals. Foreigners are required to obtain a work permit before they can be employed. The conditions for obtaining a work permit are numerous and the employer will pay a tax ranging from US$250 to US$750 for the permit. With regard to social security, the labor law requires employers to register with the Social Security Institute and pay a worker's retirement or accident deposit. The deposit is 7.5% of the worker's monthly wage, of which 4.5% is borne by the employer and 3% by the worker. With regard to vocational training, enterprises employing more than five workers are required to pay an annual deposit to the National Vocational Training School to finance the vocational training of their workers. The amount is 1% of the enterprise's total wages for the previous quarter.

IV. Important Events

(1) Since Kabila came to power, there have been tribal wars. the war that broke out in August 1998 involved the armies of seven African countries. Rwanda and Uganda sent troops to support the anti-government Rally for Congolese Democracy (RCD) and the Movement for the Liberation of Congo (MLC), while Angola, Zimbabwe and Namibia sent troops to support the government of the Democratic Republic of the Congo (DRC). The Democratic Republic of the Congo has become the scene of large-scale armed conflicts in Africa, which have so far claimed the lives of some 3 million people and made more than 2 million refugees. The war has also spilled over into neighboring countries, affecting the stability and development of those countries. International organizations such as the United Nations and many countries, including South Africa, have been using their diplomatic good offices to bring an early end to the war, and on April 15, 2002, tribal clashes broke out again between the Lendu and Hema peoples in the northeast of the country, who were fighting over land and natural resources. After five days of negotiations in Pretoria, a peace agreement was finally reached. However, in June 2003, militias from the Lendu and Hema clans in Bunia, the capital of Ituri district in Orientale province, again engaged in fierce armed conflict. between midnight on March 27 and noon on March 28, 2004, a group of armed men raided a number of military targets in the capital, Kinshasa, in an attempt to carry out a military coup d'état.

(2) In accordance with the relevant provisions of the United Nations, the Chinese government, with the approval of the State Council and the Central Military Commission, dispatched its first-ever peacekeeping force to the Democratic Republic of the Congo (DRC) to take part in a United Nations peacekeeping operation in April 2003.

(2) On December 3, 2003, the second batch of Chinese officers and men of the Chinese peacekeeping force in the DRC went ahead to replace the first batch of the peacekeeping force.

(3) At the beginning of March 2003, the relevant departments of the government of the Democratic Republic of the Congo (DRC) seized a batch of smuggled nuclear materials in Kinshasa, the capital. This was the fifth seizure of smuggled nuclear materials in four years. The smuggled nuclear materials could not be used to manufacture nuclear weapons, but could at best be used to produce radioactive "dirty bombs" and create radioactive contamination. Intelligence agencies have taken steps to try to curb the trafficking of nuclear materials on the mainland, especially in the major cities of Kinshasa and Kisangani and the mineral-rich province of Katanga.