THE Democratic Republic of Congo has reopened negotiations with mining companies as it seeks to recover billions of dollars lost through gold smuggling, the country’s new mines minister told Bloomberg News.
Louis Watum, appointed last month, said Congo loses 60 tons of gold annually to traffickers and armed groups who dominate trade in the conflict-ridden east, with much smuggled through Uganda and Rwanda to the United Arab Emirates.
“There’s a lot of talks in the pipeline and a few deals might be announced in the near future,” Watum said in an interview with the newswire. “We are talking with not only existing big mining houses like Barrick. We open again space for newcomers as well.”
The minister, who previously developed Africa’s largest gold mine at Kibali now owned by Barrick Mining Corp, said the lost gold could be worth over $7bn at current near-record prices – a transformative sum for the impoverished nation, said Bloomberg News.
Watum is also pursuing talks with the US on a minerals, infrastructure and security agreement he described as “quite advanced,” whilst working to resolve disputes with major copper and cobalt miners including Glencore and Eurasian Resources Group.
“I don’t think expropriating assets from their operators is a right signal to send to the world,” he said. “They also need to discharge on their obligations.”
A Glencore spokesperson said the company continues engaging with government. Barrick’s Congo manager said the firm “is ready to invest in future growth” in the country.
