The Kipoi Copper Mine Project

In December 2015, the International Finance Corporation (IFC) approved the Kipoi Copper Mine Project to support Société d’Exploitation de Kipoi (SEK)’s mine expansion. The IFC project objectives are to increase 1) mine production from 25,000 tons of copper annually to 32,500 tons annually and 2) Kipoi’s infrastructure capacity. According to the IFC, benefits of the project include: additional employment opportunities for local communities; the construction of a school and a clinic by SEK; management of rural waste supply in local communities; provision of HIV/AIDS, malaria, and agricultural education and training; and, annual company investment in community improvement projects.

BIC worked with our partner in the DRC, African Resource Watch (AFREWATCH), to monitor the project and identified the following concerns:

As the Kipoi Mine Project is an expansion of an existing operation, the IFC states the project will not have any notable new impacts and accordingly places little emphasis on the environmental impacts of the project. However, large-scale mines historically are known to have severe impacts on both the environment and surrounding communities. Communities in project affected areas are frustrated by the degradation of water and land by SEK and the lack of action taken to mitigate or commensurately compensate for the damages. For example, SEK has polluted and forbidden use of the Lukutwe River but has provided insufficient access to water for the 2,800 people who depend on the river. Furthermore, the dumping of toxic acids into the Lukutwe has negatively impacted the soil for agricultural land and caused fish and other aquatic species to disappear. Though the mine has been operating for several years, and some pollution pre-dates IFC’s investment, the mine expansion has only added to these problems. The IFC has only disclosed an Environmental and Social Review Summary, so it remains unclear whether or how these problems will be addressed.

SEK has a weak commitment to its community development obligations and social responsibility commitments as required by the DRC’s 2018 Mining Code and Regulations and the IFC’s Environmental and Social Action Plan. Company commitments to the local communities, such as improved education opportunities, electricity, and increased employment, have not materialized. Our partner, AFREWATCH noted the two schools built by SEK have insufficient capacity and funding to accommodate the demographic evolution of the surrounding villages. Additionally, the health clinic built by SEK lacks beds, equipment, qualified personnel, and an operational pharmacy. Due to these insufficiencies, community members receive no treatment or resort to the dangerous practice of self medication. Moreover, out of the approximately 43,742 inhabitants of the surrounding villages, SEK employs only 15 people, or 1 percent of the native population. Agricultural support from SEK was also wanting and did not lead to broad community development. When seeking redress for these community obligations, community members asserted that complaints submitted to the social development service of SEK have not been successful.

Last Updated

February 15, 2022

Location

Kipoi, The Democratic Republic of Congo

Institution

World Bank Group

Campaigns

Climate, Stakeholder Engagement

Total Cost

$162.5 million

Funding

The International Finance Corporation

MDB Financing Status

Archived