DRC: UAE signs $1.9 billion deal with state-owned mining company
On Monday, President Félix Tshisekedi of the Democratic Republic of Congo (DRC) announced that the United Arab Emirates (UAE) signed a significant $1.9 billion deal with the state-owned mining company, la Société aurifère du Kivu et du Maniema (Sakima). The partnership aims to develop a minimum of four industrial mines in the troubled eastern regions of South Kivu and Maniema.
Sakima currently holds mining concessions in the region for various minerals, including tin, tantalum, tungsten, and gold. However, the specific minerals covered by the deal were not disclosed by the government.
This agreement follows the DRC’s previous 25-year contract signed in December with the UAE-based firm, Primera Group, granting them export rights for artisanally mined ores, such as gold, coltan, tin, tantalum, and tungsten. The DRC sees this initiative as a measure to combat the trafficking of minerals to armed groups, which have been perpetuating conflicts in the troubled eastern region of the country.
The eastern DRC has long been troubled by armed conflicts, with numerous militia groups operating in the area. These groups often sustain themselves through the smuggling of minerals. A recent UN report raised concerns about the legality of artisanal mines supplying Primera Gold, suggesting that the supply chain could be compromised by ore from sites controlled by armed groups due to faulty traceability mechanisms.
Despite these challenges, Primera Gold initiated operations in January, and in May, it shipped a ton of certified gold according to the Congolese Ministry of Finance. The new partnership between the UAE and Sakima is expected to have a significant impact on the development and mining activities in the eastern DRC.