Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
The governor of Democratic Republic of Congo’s South Kivu province has suspended all mining activities in the restive region and ordered companies and operators to leave mining sites, he said on Friday.
Governor Jean-Jacques Purusi Sadiki said in a statement that the suspension until further notice was due to “disorder caused by the mining operators,” without elaborating.
“All companies, businesses and cooperatives are required to leave the sites and operating locations within 72 hours,” he said.
The decision will hit artisanal miners of metals such as gold and tin hard, as they are the region’s dominant producers.
“The decision is illegal and falls within the scope of abuse of power,” said Jean Pierre Okenda, an analyst on governance in Congo’s extractive sector, adding that Congo’s mines minister should urgently ask for the ban to be lifted.
In a separate statement, the governor called for a July 30 meeting with mining operators to assess the situation.
“If artisanal mining is banned, the whole province will be penalized. It’s this activity that keeps people alive and business going,” said Innocent Watuta Ibungu, a mining operator.
(By Stanis Bujakera, Crispin Kyala, Felix Njini and Bate Felix; Editing by Jason Neely and Rod Nickel)
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