Abu Dhabi Mining Executive Implicated in Gold Smuggling Dealings
A United Nations report has implicated Sibtein Alibhai, chief global strategist of Abu Dhabi’s largest listed company, International Resources Holding (IRH), in dealings with gold smugglers from central Africa.
Since April 2023, Alibhai has been leading IRH’s expansion into mining. He played a pivotal role in acquiring a major Zambian copper mine and has been involved in discussions with foreign governments on multiple occasions.
However, UN investigators recently reported that Alibhai engaged with gold traffickers while working with another venture aimed at cleaning up the mineral trade in eastern Democratic Republic of Congo.
This report did not mention IRH or his role with the Emirati company but noted his meetings with gold smugglers as recently as March this year.
IRH, a unit of the International Holding Company (IHC), is controlled by UAE’s National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan.
The company was relatively unknown in the global mining sector until it acquired Zambia’s Mopani copper-cobalt complex from the government last year, committing over $1 billion to the asset. Alibhai led the negotiations for IRH in this deal.
Since then, IRH has aggressively pursued mining deals in Africa and beyond, focusing on metals crucial for the energy transition, such as copper.
The company has agreements to mine iron ore in Angola and is exploring deals for cobalt, nickel, lithium, and graphite worldwide. In April, Alibhai led an IRH delegation to Peru for talks with the government, according to the Peruvian mining ministry.
Simultaneously, Alibhai reportedly approached gold smugglers on behalf of Primera Group, a company he founded, offering them business opportunities, according to the UN Security Council report.
These meetings occurred in February and March. Alibhai stated he resigned from Primera Group in April 2023 to join IRH and has not represented Primera since then. Neither IRH nor Alibhai commented on the smuggling allegations.
Primera, registered in Abu Dhabi, launched a project in December 2022 to formalize the gold trade in Congo to combat smuggling and violence.
The partnership was granted a 25-year contract to export hand-mined gold, selling 5 tons worth about $300 million in its first year. However, sales have since declined, and Congo’s government is finalizing a deal to buy out Primera’s 55% stake in the business.
For nearly three decades, mineral smuggling from eastern Congo has funded conflicts. The government claims much of the trafficked gold ends up in the UAE after passing through Rwanda, Uganda, and Burundi, which have exported billions in gold despite having few mines. These countries deny shipping stolen gold.
SOURCE:mining.com
