UAE and DRC Sign $1.9 Billion Deal for Mining Development in Eastern Congo

The Democratic Republic of the Congo (DRC) has signed an important agreement with the United Arab Emirates (UAE) to develop multiple mines in the volatile eastern region of the country. The Congolese presidency announced that a delegation from the UAE government signed a $1.9 billion partnership agreement with the state mining company Societe Aurifere du Kivu et du Maniema (Sakima) in Kinshasa.

The agreement, according to a statement issued by President Felix Tshisekedi’s office, calls for the construction of more than four industrial mines in the provinces of South Kivu and Maniema. Sakima, a state-owned enterprise, holds mining concessions in that area of the DRC for various minerals such as tin, tantalum, tungsten, and gold. The statement, however, did not include any specifics about the minerals to be extracted.

This agreement comes on the heels of the DRC’s December signing of a 25-year contract with the UAE firm Primera Group, which granted export rights for artisanally mined ores. Independent miners who are not employed by mining companies are referred to as artisanal miners. The contract gave Primera Group a majority stake in two joint ventures, Primera Gold and Primera Metals. It also obtained preferential export rates for gold, coltan, tin, tantalum, and tungsten mined artisanally.

This initiative has been presented by the DRC as a strategy to combat mineral smuggling and improve the livelihoods of informal miners. The country’s eastern region has long been plagued by conflict, with numerous militias profiting from the illegal trade of minerals, estimated by the UN to number around 120 groups. Despite the presence of regional peacekeeping forces and a UN military contingent, the conflict has persisted, resulting in the displacement of over 5 million people internally and a million more fleeing abroad since May 2021, according to the Norwegian Refugee Council.

According to the Congolese finance ministry, Primera Gold began operations in South Kivu province in January and had already shipped one tonne of certified gold by May. The UAE’s investment in mining projects in the DRC’s eastern region has the potential to boost economic development, create jobs, and help stabilise the region.

While the specific terms and conditions of the $1.9 billion agreement between the UAE and Sakima have not been disclosed, the agreement represents a significant step towards utilising the mineral resources of the DRC’s eastern provinces. As the projects progress, it is critical to ensure that the mining industry’s development is consistent with environmental sustainability and social responsibility principles. Furthermore, efforts must be made to address the root causes of conflict in the region in order to foster long-term stability and prosperity.