The United Arab Emirates (UAE) signed a $1.9 billion deal with the state mining company, Societe Aurifere du Kivu et du Maniema, on July 18, in a significant milestone aimed at strengthening mining activity in the Democratic Republic of the Congo (DRC). The collaboration was formalized during a visit to Kinshasa by an Emirati government team. The deal, according to President Felix Tshisekedi’s office, lays the way for the development of at least four industrial mines in the volatile provinces of South Kivu and Maniema.
UAE’s Multi-Billion Dollar Investment in DRC’s Mining Sector
The agreement marks a major investment by the UAE in the DRC’s mining sector. The deal with Societe Aurifere du Kivu et du Maniema signifies the development of multiple mines that will focus on extracting minerals such as tin, tantalum, tungsten, and gold in the eastern regions of the African nation. The move aims to tap into the vast mineral wealth of the region while contributing to economic growth in both countries.
Prior Initiatives to Regulate Artisanal Mining and Undercut Smuggling
Before this deal, the DRC had signed a 25-year contract with UAE firm Primera Group in December. The contract granted Primera Group a majority stake in two joint ventures, Primera Gold and Primera Metals, and allowed them preferential export rates for artisanally mined ores, including gold, coltan, tin, tantalum, and tungsten. These artisanal miners, who are not affiliated with mining companies, have historically contributed to the conflict in the region as their activities have been exploited by militias engaging in illicit mineral trading.
Combating Conflict and Promoting Stability in Eastern DRC
The eastern part of the DRC has been grappling with a protracted conflict involving numerous militias for decades. This ongoing turbulence has resulted in the internal displacement of approximately 5 million people, and a million more have fled the country since the conflict’s latest escalation in May 2021, as per the Norwegian Refugee Council. By investing in legitimate mining operations and granting preferential export rights for artisanally mined ores, the DRC aims to undercut mineral smugglers and offer better livelihood opportunities to informal miners, potentially contributing to stability in the region.
The $1.9 billion deal between the UAE and Societe Aurifere du Kivu et du Maniema marks a significant milestone in the development of the DRC’s mining sector. By investing in industrial mines in the troubled eastern provinces, both countries aim to capitalize on the rich mineral resources while striving to bring an end to the illicit mineral trade that has fueled conflicts in the region. As the partnership takes shape, it is hoped that this initiative will pave the way for economic growth and stability in the Democratic Republic of the Congo.
