DRC State Miner MIBA in Loan Talks for Infrastructure Rebuild

MIBA, the Democratic Republic of the Congo’s (DRC) state-owned mining company, is planning to sign a deal with state lenders in South Africa to support its infrastructure and industrial mining operations rebuilding effort.

The $140 million loan agreement will provide much-needed assistance, but, according to Reuters, the company still needs an additional $150 million minimum for the rehabilitation of hydroelectric plants.

MIBA Chief Administrative Officer Paul Kabongo recently said that the company was in the final stages of loan discussions with the Industrial Development Corporation of South Africa (IDC) and the Development Bank of Southern Africa (DBSA), and added that the deals are expected to be finalized in the next two months.

IDC is a self-financing, state-owned national development finance institution that provides financing to entrepreneurs and businesses engaged in competitive industries. DBSA is a development finance institutions, whose purpose is to accelerate sustainable socio-economic development by funding physical, social and economic infrastructure.

Kabongo explained that MIBA has in the past been hurt by illegal mining and smuggling, and, although DRC’s natural resources, including diamonds, are some of the richest on the African continent, most of the diamonds exported from the country do not pass through MIBA.

Since the beginning of December, he said, the situation has begun improving. Approximately 100,000 carats per month are estimated to be produced by MIBA at present, a total that could rise as high as 200,000 in the near future, according to Kabongo, although this is dependent upon the company getting enough power.

Mwana Africa owns 20 percent of MIBA, with the remainder being owned by the government.