DRC’S Finance Minister insists on certifying MIBA’s reserves before implementing $453M recovery plan

The “MIBA SA” has been experiencing serious difficulties for twenty years, the first visible signs of which appeared around 1998. They worsened over time to lead to the cessation of production in November 2008 and to resume in 2011 to date at an insignificant level. This company expects the government to finance its recovery plan estimated at 453 million USD to be implemented in 5 years. 

The Minister of Finance, Nicolas Kazadi addressed the issue relating to the recovery plan for the Minière de Bakwanga (MIBA) during the press briefing held on Tuesday, April 25, 2023. For the national treasurer, the application of the recovery plan for the MIBA should only be done after the certification process for the underground reserves of this perimeter.

”MIBA has a huge history. It owes its employees and suppliers several hundred million USD. No mining investment is made, if one does not have the exact evaluation of the reserves which are in the perimeter of the basement of the mine considered.

 MIBA does not have a good knowledge of its reserves. She has already consumed mines that were on the surface. It has great reserves but which are not fully known enough.

 We have given priority to the certification of reserves in this part of the country which has not only diamonds but also nickel and chromium,” said Nicolas Kazadi.

For Nicolas Kazadi, the current certification of MIBA’s reserves will allow investors to take an interest in MIBA again.  

“As soon as we have finished the current certification, we will have elements to bring in investors. In the meantime, we are saving the essentials, by paying the employees’ salaries every month,” said Nicolas Kazadi.

To enable MIBA to better relaunch its activities, Nicolas Kazadi announced funding of at least 3 million USD for the construction of an electric dam to increase the energy capacity of the city of Mbuji-Mayi.

“There is also the question of energy which concerns the whole province. We are making investments to strengthen energy production capacities in Mbuji-Mayi to enable MIBA to survive a little better,” he said.

In the Democratic Republic of Congo, Miba, the Bakwanga diamond mining company, has long been one of the flagships of the country’s economy. After several years at a standstill, it gradually restarted in 2011. But today its business is no longer as lucrative. In the 1980s, it supported 40,000 people, employees and their families.