The full article can be found at the MMTA webpage below.

https://mmta.co.uk/mission-improbable-reshaping-drcs-artisanal-mining/

In May of this year, the Democratic Republic of the Congo (DRC) army’s crackdown on gold traders underscored the government’s intent to regulate the country’s artisanal mining industry. Despite skepticism and speculations regarding the government’s timing ahead of the elections, the DRC’s move signifies a strategic change. The collaboration between the DRC government and Primera, a UAE-based company, initiated in 2022, aims to monopolize and control the nation’s diverse artisanal mining, focusing initially on gold. Despite challenges, Primera’s objective is to export 60 tonnes of gold annually from the DRC.

Apart from gold, the DRC-UAE joint venture, including Primera Gold and Primera Metals, is extending to other crucial minerals such as tin, tungsten, and tantalum. The expansion into these minerals could potentially shift regional dynamics, impacting neighboring Rwanda’s export earnings and possibly rekindling conflict with the Rwanda-sympathetic M23 armed group. The DRC’s efforts to control contraband ores and its consequential impact on Rwanda highlight the intricate geopolitical situation in the region.

Furthermore, a massive investment plan of US$1.9 billion has been unveiled to develop infrastructure and industrial-scale mining in eastern DRC, particularly North and South Kivu. Despite the promising prospect, the operational realization might be years away, contingent on the region’s political stability. The current political climate surrounding the Rubaya mines in Masisi, North Kivu, further complicates the situation. Accusations of collaboration with M23 against the local senator and mine owner, Edouard Mwangachuchu, bring additional tension to an already volatile situation.

The agreement between the DRC and UAE emerges as the DRC government expresses discontent with a similar partnership with China. The renegotiation efforts with China, alongside pressure from the US for the region’s critical mineral supplies, demonstrate the global interest and competition for the DRC’s vast mineral resources. Past agreements and partnerships in the DRC mining sector, characterized by corruption and conflict, underline the complex history of foreign involvement in the DRC’s rich resource extraction industry.

Efforts to regulate the artisanal mining sector have consistently met resistance. Regardless of initiatives like conflict mineral traceability and child labor, allegations of ore laundering and smuggling persist. The DRC’s diverse and substantial artisanal mining sector, accounting for a significant portion of the nation’s mineral production, continues to operate amid this uncertainty and tension.

In the short term, the situation in the Kivus and Rwanda appears fraught with challenges. Potential election postponement, outside influence from countries like Qatar supporting Rwanda, and the new UAE-backed venture’s success in the Kivus add to the region’s complexity. Downstream investments and development initiatives are threatened by the unstable political, regulatory, and security environment, hindering long-term development goals for the region.

Despite these substantial challenges and the intricate geopolitical landscape, the DRC’s initiative to regulate and control its artisanal mining sector signifies a critical step in navigating the nation’s valuable resources. The collaboration with UAE-based Primera, and the substantial investment in infrastructure and industrial-scale mining, presents a cautious hope for the region’s future, contingent on sustained political stability and successful regulation implementation. The unfolding developments warrant close observation for assessing the potential impact on the region’s geopolitical and economic landscape.