China-based Anhui Foreign Economic Construction Group and Democratic Republic of Congo have formed a joint venture diamond company - Societe Anhui- Congo d'Investissement Minier Sprl (SACIM).
The equal joint venture will explore projects in Eastern Kasai province and expects to produce 6 million carats a year by 2016, reported Bloomberg.
The new venture has two diamond- exploration permits in Tshibwe with total estimated reserves of 158 million carats.
Both the parties have decided to take the company public. Besides, SACIM will replace the state-controlled Societe Congolaise d’Investissement Minier Sprl (SCIM) and take up the $7.7m debt of SCIM.
Anhui is set to invest $100m for the infrastructure with an additional $4.2m for its share alongside signing a bonus of $61m. Of the total investment, Congo will be paid initial $9.15m of the signing bonus and additional $10.1m at production.
According to the terms of agreement, Anhui will eventually pay the rest after the company is listed on an undisclosed stock exchange and sale of the diamonds.
In addition, Anhui will develop a 4.6MW hydropower plant near Tshibwe and a new facility for Congo’s diamond regulator at the N’Djili airport in Kinshasa. It is also liable to help the country secure a loan from Chinese government to build a 15MW hydroelectric plant at Tubi Tubidi and a road from the plant to Mbuji-Mayi.