Intrigue as DR Congo and UAE talk mining, arms deals
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Negotiations are ongoing between the Democratic Republic of Congo (DRC) and the United Arab Emirates (UAE) regarding a significant mining agreement. The agreement is still being refined, but according to a report, Kinshasa has already submitted a list of 14 permits to Dubai. These permits relate to potential mining locations and are situated in the mining province of Katanga.
The proposal was submitted by the DRC as a response to the UAE’s expressed interest in expanding its mining activities. Abu Dhabi’s interest in this venture is being communicated through Primera Group, a company set up by Sibtein Alibhai and Ajay Bathia, who are both businessmen and have been appointed to represent the Emirati government.
The details of the proposed agreement are not yet clear, but it is expected that the DRC will benefit from increased foreign investment in its mining sector, while the UAE will have access to valuable resources such as copper and cobalt, which are in high demand for use in various industries. The negotiations are being closely monitored by observers, as the outcome could have significant economic and political implications for both countries.
Complex process
The DRC is currently in the process of negotiating which mining permits to grant to different companies. This is a complex process, and there are some permits that are causing particular concern. Some of the permits in question are owned by the state-run company Gécamines, while others are held by private companies, such as Swanmines, which is a subsidiary of the Eurasian Resources Group (ERG) based in Luxembourg.
The DRC is scrutinizing the CAMI mining register to identify permits that have not been fully exploited or are no longer in use. One such permit is permit 591, which is owned by Swanmines. The Congolese authorities have notified ERG that they intend to revoke their permit for this site. ERG has decided to challenge this decision and has taken the matter to the International Court of Arbitration in Paris.
Suspended agreement
Abu Dhabi was given a list that includes permits belonging to other big mining companies. Three of these permits belong to Kipushi Corporation (KICO), which is owned by Robert Friedland’s Ivanhoe Mines. The president of KICO’s board of directors, Louis Watum, was not told about the Congolese authorities’ plan to include these permits. Watum is also the president of the Chamber of Mines within the Federation of Enterprises of Congo (FEC). The permits in question expired in early 2020, but they are now being renewed. Another complex license is owned by Interactive Energy Russia, which is owned by Ruben Katsobashvili, a reclusive Russian businessman.
The report says that the DRC and The UAE are currently in talks about which mining permits to issue. However, the report states that Abu Dhabi has a bigger interest in the DRC’s mining sector and is eyeing the state-owned company, SAKIMA, which is experiencing financial difficulties. In June 2021, the Congolese president’s office signed an agreement with the company Dither to process gold from Sakima and help the company recover. Unfortunately, the agreement was put on hold due to strained relations between the DRC and Rwanda caused by the security crisis with the M23 rebel group. This opens the possibility for other countries or companies to take advantage of the situation and fill the void created by the suspended agreement.
Arms deals
The military aspect of the partnership between DRC and the UAE is already in place, although the scope of the agreement is not subject to public scrutiny. It is known that the Emiratis donated around thirty armoured vehicles to the DRC in October 2021.
The report reveals that a cargo plane, chartered from UAE air cargo company Maximus Air Cargo, was due to land on the 2nd of May in N’Djili, with this flight carrying military equipment. This air cargo company specializes in the transport of military equipment.
Plans are also afoot to recruit private military personnel to combat armed groups, including M23. According to the report:
“The US embassy in Kinshasa told Africa Intelligence in late March that it had “been given information that the DRC government has signed a contract with the private company Academi for the provision of protection services.” The company in question, which specialises in private security and is better known by its former name, Blackwater was founded by the American Erik Prince, who left the company nearly 13 years ago. The US firm Triple Canopy then acquired Blackwater in 2014 and placed it under the umbrella of Constellis Group. When contacted, Academi did not respond to our queries.”
