Banro has no appetite for troubled DRC

2020-07-02T07:47:37+00:00 July 2nd, 2020|News|

(Original article first published by Reuters – Johannesburg.)

Canadian miner Banro Corporation has sold its second mine in the DRC.

Namoya gold mine in the Democratic Republic of the Congo (DRC). Image credit: Banro

Namoya gold mine in the Democratic Republic of the Congo (DRC). Image credit: Banro

Canadian company Banro Corporation has sold its troubled Namoya gold mine in the Democratic Republic of the Congo (DRC). Banro’s operations in the Maniema and South Kivu provinces of the DRC have faced several attacks by armed militia recently. Two Banro workers were kidnapped in July 2019, the fifth in a series of such incidents since September 2016, according to a recent United Nations report. These incidents forced the company to suspend operations at several mining sites. According to Brett Richards, chairman at Banro, the deal is subject to final approval by the DRC government, and the company will receive a perpetual royalty for all future production from the mine.

Shomka Resources is a venture owned 65.5% by Congolese-owned Shomka Capital and 34.5% by Chinese firm Baiyin International Investments Ltd. The Chinese company bought Banro’s other mine in the DRC, Twangiza, in January for one US Dollar. Shomka Resources chairman and CEO Victor S. Kasongo said his firm aimed to resume production at Namoya by early January. Banro delisted from the Toronto stock exchange in January 2018. After the sale of Namoya, it will still hold two mining licences – Lugushwa Mining and Kamituga – and 17 exploration properties in the DRC.