The battle of Kigali and Kampala for the control of Congolese minerals (A report)
In their report released on Tuesday, New York University’s Congo Study Group (GEC) and its research partner Ebuteli put the control of Congolese minerals back at the heart of the resurgence of M23 and the launch of the joint FARDC-UPDF operation.
The two research entities explain that Dott Services, which was chosen to carry out the construction of the roads linking the DRC to Uganda, is a major player in understanding the renewed conflicts in the region.
For context, the DRC and Uganda are bound by agreements that should lead to the construction and modernization of 1,182 kilometers of the main road network linking the two countries. This project is proceeding in stages. The first concerns 223 kilometers of priority roads at an estimated cost of 335 million USD. Three parties have pledged to fund this first step. Uganda and DRC would contribute 20% each and Dott Services, the implementing company will cover the remaining 60% (201 million USD). Kampala has already authorized the disbursement of 66 million, while Kinshasa has still not decided on the first disbursements while the project was officially launched in June 2021 by Yoweri Museveni and Félix Tshisekedi.
GEC and Ebuteli explain that in November 2020, Dott Services had signed a contract with the Congolese state mining company Sakima, by which it acquired mining sites of strategic importance in the province of Maniema, rich in tin, tantalum and tungsten, as well as gold.
“To do this, it created the Punia Kasese Mining (PKM) joint venture, in which it owns 70% of the shares. The remaining 30% is owned by Congolese state-owned mining company Sakima. The contract also provides for the creation of a processing plant for ores and precious metals allowing the joint venture to launch infrastructure projects in the region, as well as the rehabilitation and development of hydroelectric assets”, details the report of the GEC and Ebuteli.
At the same time, Rwanda has also been active in the mining sector in the DRC. Kinshasa and Kigali signed in June 2021, a series of mining contracts. In particular, there is the agreement signed between the presidents of the two countries, stipulating that the gold produced by Sakima will be refined in Rwanda by the relatively unknown local company Dither Ltd. Dither and Sakima also signed another contract that says Dither will provide funding for “the start of mining operations”, add GEC and Ebuteli.
In 2021, gold was Uganda’s most important export commodity, worth $2.24 billion. “Most of this gold comes from the DRC and a decline in access to Congolese gold would have major economic consequences,” the researchers add.
