LC Packaging, Buenassa and Shankar Packagings announce partnership

LC Packaging has announced the intention to enter a partnership with Buenassa, a DRC-based company dedicated to the implementation of responsible mining practices throughout the supply chain, and Shankar Packagings Ltd., one of the leading FIBC producer based in India, for the distribution and production of FIBCs [bulk bags) in the DRC.

There is clearly an increasing demand for FIBCs in the DRC and specifically in the Katanga region. The DRC government supports the local supply of mining related equipment, expertise and services. LC Packaging wishes to respond to this demand which requires a reliable partner in the DRC. It also fits with the vision of the company to support local entrepreneurship and the development of local communities in a responsible and sustainable way. Buenassa has the purpose to develop mining related services and products in order to improve the supply chain of critical minerals through the financing of artisanal and small scale mining operations, and the development of local processing, recycling and trading of critical minerals. The goal is to increase the benefit for the DRC in general and local communities in particular.

The views of both companies combined will clearly support the DRC government’s efforts to foster a traceable, ethical and responsible mining sector, focused on critical minerals and aligned with the aim of contributing to a just energy transition in the context of global climate action.

The intended partnership is set to develop in two distinct stages. Phase one concerns the distribution of FIBC’s produced in South Africa and Asia to large-scale, artisanal & small­ scale mines in the DRC [including but not restricted to copper, cobalt, lithium & zinc mines). Bulk bags will be stored at a local warehouse, allowing for continuity of supply and rapid response to demand peaks. Phase two intends to include a joint venture between LC Packaging, Buenassa and Shankar Packagings Ltd., for the purpose of creating a production facility in Kolwezi, Province de Lualaba, DRC. This joint venture is expected to generate employment, enhance labour skills through training and development as well as promote the use of locally produced FIBCs [bulk bags) within the DRC.

Richard Green, Regional Director Southern Africa at LC Packaging looks forward to partnering with Buenassa and Shankar Packagings in the DRC: “LC Packaging has been supplying bulk bags to numerous DRC mining entities over the past 12 years. We are confident that the intended partnership for distribution and local production of FIBCs between the three of us will strengthen our position in the DRC and will contribute to the further development of the Lualaba region.”

Eddy Kiani, CEO of Buenassa, said: “We are delighted to join forces with LC Packaging and Shankar Packagings, two world leaders in the FIBC sector, as this is a strategic opportunity

for us to position ourselves in a key market to support the activities of mining, agri-industrial and other industrial companies in the DRC by providing them with the high-quality containers they constantly need to package their products. On the top of that, through the establishment of an assembly plant planned by the end of this year that will provide local employment in Lualaba, this alliance also aims to transfer know-how to an economically dynamic region that is seeking to shape its industrialisation program.”

Keshav Pandya, Vice President of Shankar Packagings, highlights the long-term relationship between Shankar Packagings and LC Packaging: ··our association with LC Packaging goes back more than 20 years. Since 2012, we have been producing FIBCs for the Southern African market at LC Shankar, a joint venture between Shankar Packagings and LC Packaging. Achieving a local presence in the DRC is a great way to expand our global reach.”

The three parties will organise themselves in such a way that the negotiations are moving ahead with appropriate speed and in an efficient manner.