July 18, 2023
In December, the Democratic Republic of the Congo (DRC) signed a 25-year contract with a United Arab Emirates (UAE) firm regarding export rights for ores mined by independent artisans. However, more recent developments reveal that the UAE has entered into a significant agreement with the DRC. The Congolese presidency announced that a delegation from the UAE government signed a partnership deal with the state mining company Societe Aurifere du Kivu et du Maniema (Sakima) in the capital city of Kinshasa. Valued at $1.9 billion, this deal aims to develop a minimum of four mines in the volatile eastern regions of the DRC, specifically in the provinces of South Kivu and Maniema.
The statement from President Felix Tshisekedi’s office does not provide specific details about the minerals that will be extracted from these mines. However, it mentions that Sakima already holds mining concessions for tin, tantalum, tungsten, and gold in that area. The agreement with the UAE represents an effort by the DRC to combat mineral smuggling and improve the conditions and livelihoods of informal miners. The country has been plagued by numerous militias, with as many as 120 such groups identified by the United Nations, sustained in part through the illicit trade of minerals.
Earlier, in December, the DRC had awarded Primera Group, a UAE firm, a majority stake in two joint ventures, Primera Gold and Primera Metals, under a 25-year contract. This contract granted preferential export rates for artisanally mined gold, coltan, tin, tantalum, and tungsten. Primera Gold began its operations in South Kivu province in January, and by May, it had already shipped 1 tonne of certified gold, according to the Congolese finance ministry.
The conflict in the eastern regions of the DRC has persisted despite the presence of regional peacekeeping forces and a UN military contingent. The ongoing conflict, which reignited in May 2021, has resulted in the internal displacement of at least 5 million people, with an additional 1 million fleeing to other countries, according to the Norwegian Refugee Council.
photo source: google
Delino Gayweh
Serrari Financial Analyst
