GENEVA-based Mercuria Energy Group has discussed developing a tantalum project in eastern Congo’s conflict zone with US-backed investment firm TechMet, contingent on the Trump administration securing a peace agreement, said Bloomberg News.
The companies are exploring a joint venture to upgrade mining and processing operations at one of the world’s richest tantalum-bearing coltan deposits near Rubaya, said the newswire citing sources familiar with the matter.
The discussions come as Washington and Kinshasa approach an accord to increase American investment in the Democratic Republic of Congo’s mineral wealth, including copper, cobalt and lithium. Tantalum is critical for electronics, aerospace and defence industries, said Bloomberg News.
TechMet and Mercuria have held preliminary talks with the US government but have not yet formally engaged Congolese authorities. Kinshasa seeks US-aligned investors to pursue peace and economic growth.
Any agreement would require M23 rebels to withdraw from Rubaya, where they control mining operations, said Bloomberg News. The US and United Nations say the group receives backing from neighbouring Rwanda.
State-owned Societe Aurifere du Kivu et du Maniema, known as SAKIMA, holds the licence covering the coltan mining areas near Rubaya but cannot access the concession due to fighting. The company secured a court victory last month in an ongoing legal battle with another local firm claiming ownership.
Dublin-based TechMet counts the US International Development Finance Corp and Qatar Investment Authority amongst its major shareholders. The firm previously invested in Trinity Metals, a tin, tungsten and tantalum producer in Rwanda.
Mercuria holds a substantial stake in TechMet and is expanding its metals trading operations, particularly copper from Congo and Zambia.
