South32 expects to start rebuilding at Mozambique project after post-election hit
Earlier this month, the company retracted its output prediction for the Mozal aluminum smelter in Mozambique.
The Democratic Republic of Congo’s government revoked its authorization for the country’s first gold refinery, days before its planned inauguration on Wednesday.
The plant, built by Congo Gold Raffinerie Sarl in the eastern city of Bukavu, has been in the works since 2019 and was expected to produce two tons of gold a month using ore from artisanal mines in South Kivu province.
Mines Minister Antoinette N’Samba Kalambayi canceled the company’s permit because it “did not respect its societal obligations,” according to a July 24 decree seen by Bloomberg and confirmed by both CGR and the ministry. Neither provided further details.
The company is owned equally by Congolese businessman Dieudonne Kasembo Nyembo and Yasin Somji, whose family has a long history of doing business, including mineral trading, in central Africa. CGR has 30 days to appeal, according to the decree.
Just last month, N’Samba Kalambayi gave the project a “green light” in a meeting with company officials in the capital, Kinshasa. “The actual gold processing can begin without hesitation in July,” the ministry said in a statement on its website that cited the minister.
The decision coincides with the expansion of a separate gold venture in South Kivu between Congo’s government and Abu Dhabi-based Primera Group Ltd. that began operating in January.
Primera Gold DRC SA has shipped 2 tons of hand-dug gold through the first half of the year, the company said earlier this month. It aims to eventually export as much as 36 tons per year. Its output is sent to the UAE for refining.
Congolese President Felix Tshisekedi has stressed the importance of local refining of the country’s minerals to increase government revenue. The mines ministry cited the president’s policy when it backed the CGR refinery last month.
(By Michael J. Kavanagh)
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