With a presence in the DRC for 10 years, what were the motivations behind SRK Consulting’s expansion to Lubumbashi and how have your operations here in DRC developed?

SM: SRK Consulting entered the DRC due to its established mining experience and the need to have local representation in a country where our clients operate; Lubumbashi became a natural choice as so many companies are concentrated in the city. We focus on all stages of the mining cycle—exploration, feasibility studies, operations—offering a multi-disciplinary approach. The company experienced considerable growth and has weathered the downturn well. Though the downturn is a thing of the past, the DRC still suffers from political volatility, especially in the aftermath of the recent election. The population awaits the new government while the mining industry expects clarification on the new mining code. These combined challenges have created an air of caution both domestically and amongst international investors.

It is difficult to forecast what the future will hold for metals such as cobalt. For example, there is now a technology that claims to lower the cobalt content of a battery from 20% to 4%, which could be damaging to the DRC’s mining industry. How are companies best able to manage such risk?

SM: While end-user companies are probing the possibility of partly replacing cobalt, this is unlikely to affect the DRC in the next two to three years. Some of this reduction in usage will be offset by the increase in demand for batteries with an increasing use of electric vehicles.  In addition, research is being conducted into potential usages for cobalt, and new areas are likely to emerge. Companies have invested in the current technology, so they must repay any existing loans or debt before being in a position to invest in new technologies. Therefore, the risk in mining cobalt, based on demand, is currently minimal.

Corruption is widespread in the DRC, and many local companies lack the internal systems to safeguard against malpractice. As a large, established organization, how does SRK fare in this environment?

WJ: As a global firm of consulting engineers and scientists with over 40 years of experience in the industry, we have a zero-tolerance policy towards corruption. We have strict anti-corruption guidelines that our staff follow. Fortunately, many of our appointments are from listed international companies operating in Africa that have to abide by their listing rules, which include rules pertaining to corruption. Having operated in Africa since 1974, SRK is known to be established and reputable, and these multinational corporations are looking for credible companies with a best-practice focus for their projects. For instance, if they have IFC funding, we will be scrutinized upfront to ensure that our involvement does not pose a risk to the transaction. We have also built professional networks across the globe, resulting in experienced, multi-national teams. For example, for our projects in the DRC we often draw heavily from our South African and global offices that have a thorough knowledge of operating in Africa while developing local skills in the DRC.

What is driving the increase in service demand from accredited companies such as SRK?

WJ: Next year, SRK is celebrating the 10-year anniversary of its office in the DRC; companies use SRK due to its solid track record and expertise in the DRC, and our ability to deliver on projects by sourcing experts from our South African and international offices when required. This sets us apart from many of our competitors who have only recently established offices in the DRC with limited staff. Due to the competitive environment, mines want integrated and innovative solutions delivered on time; SRK’s multi-disciplinary approach assists with assessing the “bigger picture” – thereby avoiding costly surprises down the line. Experience and track record matters, and SRK is in a position to draw on its 45 years’ experience of working in the mining industry. Chinese companies are investing heavily in the DRC, and we offer specialized mining solutions to Chinese owned and operated mines in the DRC through our China office in Beijing.

Another particular strength of SRK is social and governance solutions, as the social license to operate continues to gain ground as being fundamental to the success of any project. A good example is the new requirement for “Cahier de Charge,” which SRK successfully undertook for a major mining company and represens the first in the DRC. We have received many enquiries in this regard, and this will be a key focus for the office in the short to medium term.

One major industry problem is that mining companies often neglect the necessary planning of the closing stages of the mining cycle before starting an operation. Are you seeing a trend towards greater environmental consideration at the early stages of mine planning?

WJ: One factor that deters responsibility for legacy issues is of course the million-dollar cost to rehabilitate an operation site as these are often vast areas with extensive structures. The other issue is the lack of social consideration when outlining closure plans, which are developed prior to project commencement and updated through the life of the mine. Companies more often focus on the environmental outcome as it is easier to predict. However, social impacts are an entirely different matter that companies are grappling with, and SRK is well placed to assist companies to include social considerations into their closure plans. Another positive development is that we now see communities becoming more actively involved in the decision-making process.

Looking to the future, where do you see the most opportunity for growth in the DRC for SRK?

WJ: Mining will always be our primary focus, and SRK’s exploration and mining teams will continue the journey with our clients in expanding their footprint in the DRC.

We see great opportunity in the DRC’s mining sector given that it is a country endowed with many mineral resources. The switch to electric vehicles means that the DRC is well positioned to supply the ever-increasing demand for copper and cobalt. Based on what is known about the DRC’s minerals wealth, there is a huge opportunity to explore vast areas of the country for new mineral deposits. DRC is probably one of the few countries in the world that have undiscovered and undeveloped orebodies that may present “low hanging fruit” to potential investors. Sustained political stability and regulatory certainty will increase the attractiveness of the country for mining investors.

Other opportunities include addressing the backlog in infrastructure development, opportunities for hydroelectric power and the potential for agriculture. Furthermore, proper infrastructure is required to allow for growth and facilitate the “ease of doing business,” and we feel that there are many opportunities for SRK’s multi-disciplinary teams to provide integrated solutions, from pre-feasibility to implementation. As we have a solid foundation in the DRC, we are fully in touch with the local requirements and will continue to be best placed to advise our clients on burning issues.

Broader industrial and agricultural development will allow the country to be less reliant on the mining sector but at the same time developing these sectors are important to support further growth of the mining industry.