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// Workers AI · dad joke modeWhat did Societé Minière de Bakwanga mine? A deep relationship.

From Wikipedia, the free encyclopedia
(Redirected from MIBA)
Societé minière de Bakwanga SA
IndustryDiamond mining
Founded1962
OwnersGovernment of the Democratic Republic of the Congo (80%)
Asa Resources Group (20%)
Websitemibardc.net

Societé minière de Bakwanga, widely referred to by the shorthand MIBA, is a state-owned diamond mining company based in Mbuji-Mayi (formerly Bakwanga), Kasaï-Oriental, Democratic Republic of the Congo.

MIBA was formed in late 1961 as a subsidiary of the Société Minière du Bécéka, also known as Mibéka, a Belgian colonial company founded in 1919 to manage the mining concessions of the Compagnie du chemin de fer du Bas-Congo au Katanga (itself known as BCK or Bécéka). In the post-World War II period, Mibéka was the largest diamond producer in the world by volume. It subsequently kept operating as a Belgian holding company, formally known from 1962 as the Société d'Entreprises et d'Investissements du Bécéka, in shorthand Sibéka. In 1973, Sibéka was expropriated and MIBA was nationalized by Mobutu Sese Seko.

As of 2023, 80 percent of MIBA's stock was owned by the Congolese government, with the remaining 20 percent owned by Sibéka, itself by then a subsidiary of the Chinese-controlled Asa Resources Group. By then, following decades of decline, MIBA only produced a small minority of the DRC's diamonds.[1][2]

Background: the BCK Concession and Mibéka (1919–1961)

[edit]
Diamond mining slag heaps in Bakwanga, Kasai, 1950

In December 1918 George Young, a Scottish geologist employed by the Compagnie du chemin de fer du bas-Congo au Katanga (BCK), discovered diamonds near the Bushimaie River (now known as Mbuji-Mayi River).[3] The Société minière du Bécéka (Mibéka, sometimes also referred to simply as Bécéka) was founded in 1919 with the specific purpose of exploiting the mineral riches in the Bakwanga area.[4] The Société Générale de Belgique (SGB) held a controlling stake in the Mibéka from the start. Mibéka owned the BCK concession's mining rights but contracted out the operation to the Belgian government-controlled Forminière, which already had experience in diamond mining in Eastern Kasai, by agreement of 7 May 1920.[5]:29

In 1946, geologists located the kimberlite pipes that were the original source of the Bakwanga diamonds. Nine of the ten pipes in the Mbuji Mayi cluster were located within the "Polygon" mining license owned by Mibéka.[6] In 1956, Mibéka also discovered the Tshibwe cluster of kimberlite pipes, and mined these for a while.[6]

In the 1950s, it was estimated that the city of Bakwanga and its surrounding area had the world's most important deposit of diamonds, with at least 300 million karats.[7] While about 95% of the diamonds found near Bakwanga were relatively low value bort, the grade was very high and relatively cheap to mine.[3] In 1959, the last full year before Congolese independence, MIBA reported production of 14.1 million karats of diamonds.[citation needed] That year Gérard Cravatte [lb] took over as chief executive, a role he would keep until his death in 1967.[citation needed]

Mibéka diamond production[8]
YearProduction (carats)Fraction of World Production
1925579,88812.3%
1926771,35812.4%
1927655,3738.2%
19281,232,02915.4%
19291,407,09517.8%
19301,969,33225.5%
19312,885,60140.8%
19323,189,01452.6%
19331,736,46545.6%
19342,727,93949.5%
19352,377,06931.0%
19363,836,32446.0%
19374,120,91839.6%
19386,435,36255.0%
19397,556,84858.8%
19408,870,14268.0%
19415,188,31057.0%
19425,402,45756.3%
19434,393,31650.5%
19447,037,22759.8%
19459,863,08668.6%
19465,520,14654.5%
19474,933,76750.6%
19485,273,75251.0%
19499,099,47263.8%
19509,604,12963.1%
195110,027,06558.9%
195211,025,43059.3%
195312,056,05759.7%

Creation of MIBA and Congo Crisis (1961-1965)

[edit]

On 23 June 1960, days ahead of Congo's independence, Mibéka decided to relocate its place of registration from Bakwanga to Brussels, and to form a fully-owned subsidiary in the newly sovereign country to which it would transfer its local assets and operations.[5]:11 On 27 August 1960, the Bakwanga mine was temporarily closed due to the invasion of South Kasai. When it reopened on 1 January 1961, Mibéka took over direct management of the mine from Forminière.[9][5]:44 The subsequent turmoil did not lead to an immediate collapse in diamond extraction, but it changed its economic parameters and undermined MIBA's dominance of the region's diamond trade. 1961 set a record production rate, with 18 million karats of diamonds, but the company's profits, estimated at $12 million in 1961,[7] were commandeered by the secessionist government of South Kasai under Albert Kalonji.[citation needed]

The implementation of the Mibéka's June 1960 decision to form a local subsidiary only took place on 13 December 1961, shortly after Kalonji's arrest. On that day, the Societé Minière de Bakwanga (MIBA) was established in Bakwanga, and Mibéka, in which the SGB held a 52.5 percent ownership stake,[10] became a Belgian holding company while still keeping the European employees of its Congolese operations on its payroll and being directly involved in the sale of MIBA's diamonds outside Congo. On 21 March 1962, the Mibéka renamed itself as Société d'Entreprises et d'Investissements du Bécéka, or Sibéka.[5]:11

In 1963, MIBA produced just 1.4 million karats of diamonds, almost all of them industrial diamonds. By contrast, between 4 million and 6 million karats of diamonds were produced by diamond smugglers who had previously been tightly controlled by the Belgian colonial administrators to the benefit of the company's Belgian management.[7] Despite the smuggling and regional turmoil, the company remained dominant in the world's diamond trade. In 1963, MIBA produced 80 percent of the world's industrial diamonds and 57 percent of all diamonds.[7] However, from 1961 to 1967 nearly all of the production was exported illegally through neighboring countries, such as the Republic of Congo.[3]

Mobutu era (1965-1997)

[edit]

In 1967, following changes in Congolese labor legislation, all remaining Sibéka employees in Congo were transferred to the payroll of MIBA.[5]:44 That same year, MIBA transferred the task of selling its diamonds from Sibéka to an affiliate of De Beers, British Congo Diamond Distributors Ltd. De Beers's marketing and distribution arm, the Central Selling Organisation, simultaneously opened an office in Kinshasa.[5]:122 In 1969, in exchange for new mining rights, the Congolese state took a 50 percent equity stake in MIBA. On 30 November 1973, the authorities of the newly renamed Zaire fully nationalized the MIBA.[5]:133-134

Mobutu then returned a 20-percent ownership stake to the Sibéka, by agreement of 22 May 1978 which also stipulated that the Zairian authorities would appoint 5 members, and Sibéka 3 members, of MIBA's board of directors.[5]:134 He entered agreements with the Belgian-American businessman, Maurice Tempelsman, and together they held significant interests in MIBA.[11] Tempelsman helped Mobutu set up a relationship with De Beers consortium, allowing the Oppenheimers to import the DRC's diamonds to London.[12] Starting in 1967, exclusive purchasing rights for Zaïre's diamonds was given to British Diamond Distributing Ltd. (Britmond). Britmond was a subsidiary of the De Beers Central Selling Organization (CSO).[13] However, in April 1981, Mobutu announced that the Zaïre's state-owned Société Zaïroise de Commercialisation des Minérais (Sozacom) would be taking over international marketing of the country's diamond production, ending the arrangement with Britmond.[14][13] However, marketing arrangements through De Beers were reëstablished in early 1983.[15] Sozacom was dissolved in 1984, due to its tendency to divert receipts from the Zaïre treasury.[16]

In 1986, Mobutu appointed Jonas Mukamba Kadiata Nzemba as chief executive officer of MIBA. He remained in the position for more than ten years, up through the First Congo War.[17] In 1989, the number of members of MIBA's board of directors was reduced from eight to seven, with only two still appointed by Sibéka.[5]:134

In 1994, the economy of Mbuji-Mayi (as Bakwanga had been renamed at the end of the Congo Crisis) was increasingly disconnected from the central government of Mobutu Sese Seko. Residents rejected the 1993 New Zaïre and supported opposition leader Étienne Tshisekedi. Conditions at the mine deteriorated, with production falling by more than half over five years. An employee estimated only 30% of gem quality stones reached the end of the production line, due to theft.[18] Due to the lack of involvement from the central government, by the 1990s MIBA maintained much of the infrastructure in the city of Mbuji Mayi, including water, electricity, roads, schools and hospitals.[19]

Congo Wars (1998–2003)

[edit]

During the First Congo War in March 1997, the ascendant Alliance of Democratic Forces for the Liberation of Congo ended the arrangement under which De Beers had a monopoly on marketing all the production from MIBA, allowing other buyers to purchase some of MIBA's production at monthly auctions.[20][21]

In February 2000, the Tshibwe cluster, an 800 square kilometer diamond mining area just south of Mbuji-Mayi in the which contained MIBA's best kimberlite deposits was transferred from MIBA to the joint venture Sengamines [fr].[20] After a failed bid to float the Oryx company on the Alternative Investment Market by selling to Petra Diamonds in June 2000,[22] Sengamines claimed it had sold off equity in the company, 49% to the Cayman Islands-based Oryx Natural Resources, controlled by Omani businessman Thamer Bin Said Ahmed Al-Shanfari, 35% for COMEX Congo, and 16% for MIBA. However, no buyout actually occurred, and the ultimate beneficiary of Oryx's stake was the Zimbabwe Defence Forces, through its subsidiary Operation Sovereign Legitimacy (OSLEG).[23] Rather than a commercial sale, the transfer was a means for Laurent Kabila to help finance Zimbabwe's military interventions in the DRC.[24][25][26] MIBA took back control of the Sengamines area in August 2005.[27]

In 2000, MIBA hired a British-South African security consultant, Nigel Morgan, to work in security for the company. Morgan claimed to find irregularities in the company, including that at least five MIBA officials were engaging in stealing high value stones, and appealed to president Kabila to intervene. Morgan then left the country after receiving death threats.[28]

In July 2000, the DRC government announced a ban on diamond exports, granting International Diamond Industries-Congo (IDI), a firm owned by Dan Gertler, an exclusive 18 month monopoly on exports from the country.[29] However, following the assassination of Laurent Kabila, the deal was revoked in April 2001.[30]

MIBA chief executive officer Jean-Charles Okoto was among those named in an October 2002 report from the United Nations Security Council report describing pillaging of the DRC's resources.[31] Also in October 2002, Amnesty International reported that dozens of people were being shot every year on the MIBA concession.[32] In response to the UN report, DRC president Joseph Kabila suspended Okoto.[33]

Emaxon offtake (2003–2007)

[edit]

In April 2003, Emaxon Finance International provided MIBA $15 million in financing in exchange for the right to purchase 88% of MIBA's diamond production.[34][35] While the offtake agreement was initially signed in secret, the arrangement ended up being publicized three months later during a dispute between the Congolese minister of mines and his deputy; the previously unclear owner of Emaxon was revealed to be Dan Gertler's DGI Group.[28]

This deal was criticized by a 2005 Congolese parliamentary commission headed by Christophe Lutundula who recommended the contract be renegotiated.[36] The offtake agreement with Emaxon expired at the end of 2007.[37]

In 2006, Umicore subsidiary Sibeka, sold its interest in MIBA to Mwana Africa (now known as the Asa Resources Group).[38][39]

In 2007, diamond exports fell by 80%. There was significant insecurity at the mine, with an engineer responsible for running a new $10 million dragline excavator, and a security guard both murdered. About 10,000 artisanal miners trespassed onto the mining site every day, and employees had not been paid for more than four months.[40]

Further decline since 2008

[edit]

In October 2008, the MIBA employees went on strike several times for not being paid for more than 20 months.[41] Production was suspended between November 2008 and March 2011.[42]

Since 2013, MIBA has handed over management of the Tshibwe cluster to Societé Anhui-Congo d’Investissement Minier Sprl (SACIM), a joint venture between MIBA and the Chinese Anhui Foreign Economic Construction Group.[6]

In 2020, the government of the DRC voted to remove MIBA's governing board and restructure the company, after a May 2020 audit found significant irregularities.[43] In August 2020, at the behest of the Félix Tshisekedi administration, the state miner Gécamines gave MIBA $5 million to revamp operations.[44]

According to the Congolese Ministry of Mines, MIBA is one of only two industrial diamond mining companies in the DRC in 2023. However, the vast majority of diamond production in the country is attributed to artisanal miners or the other industrial miner, Anhui Congo Mining Investment Company (SACIM).[45]

MIBA diamond production
YearProduction (carats)
197512,400,000[14]
19798,100,000[14]
19878,200,000[20]
19909,556,436[2]
19966,500,000[20]
19976,500,000[20]
19986,400,000[46]
19994,800,000[47]
20004,5000,000[47]
20016,200,000[48]
20025,560,000[49]
20036,700,000[50]
20047,240,000[51]
20055,800,000[52]
20062,510,000[53]
20090
20100
2011243,522[54][55]
2012500,726[55]
2013174,000[56]
2014289,600[56]
2015273,300[57]
2016188,376[57][58]
201772,262[58]
2018119,000[59]
201919,683[59]
202038,788[2]

Subsidiary operations

[edit]

Energy production

[edit]

MIBA has a subsidiary, Energie du Kasaï (Enerka) which operates the Tshiala hydroelectric power station to power mining activities, and also provides power to the nearby city of Mbuji-Mayi. The plant was previously installed with twelve turbines and 18 megawatt total capacity.[60] These consisted of the 1.4 MW Tshiala 1, 7 MW Lubilanji 1, and 10.08 MW Lubilanji 2.[61] The Lubilanji 2 expansion of the plant was finalized after a $5 million contract with Anglo Belgian Corporation in July 2000.[20]

In 2012, MIBA ended a contract with the company Hydroforce Congo which had managed the hydropower plant for over four years.[62]

In 2021, president Félix Tshisekedi recommended the plant be transferred to the national electricity company SNEL, and a Tshiala II project bring the plant up to combined 8 MW.[63][64]

As of 2022, only two of the turbines were still working, at a capacity of 3.2 megawatts.[60]

Air transportation

[edit]

From 1994 to 2005, MIBA operated a one-aircraft cargo airline known as MIBA Aviation.

References

[edit]
  1. "DR Congo diamond mining giant struggles to revive its glory days". Copperbelt Katanga Mining. 2021-06-08. Retrieved 2023-10-01.
  2. 1 2 3 "MIBA's Appalling collapse in diamond production, from 10 million carats in 1990 to around 40,000 carats in 2020". Copperbelt Katanga Mining. 2023-01-09. Retrieved 2023-10-01.
  3. 1 2 3 A. J. A. Janse (Winter 1995). "A History of Diamond Sources in Africa: Part I" (PDF). Gems & Gemology. p. 249. Retrieved 2023-10-09.
  4. Economic Review: Review of the Foreign Press, Volume 1. London: Review of the Foreign Press. November 12, 1919. p. 396. Retrieved 11 April 2016.
  5. 1 2 3 4 5 6 7 8 9 Odile De Bruyn (2007), Inventaire des archives de la Société Minière du Bécéka, ensuite Société d'entreprise et d'Investissements du Bécéka "Sibéka", puis Sibéka Société d'Entreprise et d'Investissements - 1890-1999, Association pour la Valorisation des Archives d'Entreprises
  6. 1 2 3 de Wit, Michiel C. J.; Jelsma, Hielke A. (2014-12-16). "A Review of the Kimberlites of the Democratic Republic of Congo". Geology and Resource Potential of the Congo Basin. Berlin, Heidelberg: Springer Berlin Heidelberg. pp. 361–369. doi:10.1007/978-3-642-29482-2_17. ISBN 978-3-642-29481-5.
  7. 1 2 3 4 Lukas, J. Anthony (March 7, 1963). "Gem Smuggling On The Rise In Congo" (PDF). The New York Times. Retrieved 11 April 2016.
  8. United States. Bureau of Mines (1954). Mineral Trade Notes: Special supplement. Mineral Trade Notes: Special Supplement. U.S. Department of the Interior, Bureau of Mines. p. 18. Retrieved 2023-10-08.
  9. United States. Bureau of Mines (1963). Information Circular. Information Circular. p. 101. Retrieved 2023-10-08.
  10. Gilroy, Harry (2 March 1963). "Belgians Explain Kasai Operations: Diamond Miners Held Ready to Account to Congolese". The New York Times. p. 3.
  11. Leon Dash (1979-12-31). "U.S. Businessman Plays a Key Role As Aide to Mobutu". Washington Post. Retrieved 2023-10-01.
  12. Flynn, Laurie (1994-02-01). "FRONTLINE: previous reports: transcripts: the diamond empire". PBS. Retrieved 2023-10-20.
  13. 1 2 United States. Bureau of Mines; Geological Survey (U.S.) (1981). Minerals Yearbook. Bureau of Mines. p. 1143. Retrieved 2023-10-02.
  14. 1 2 3 Leon Dash (1981-11-11). "Zaire Gambles By Resigning Diamond Cartel". Washington Post. Retrieved 2023-10-02.
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  18. Cindy Shiner (1994-03-21). "In Zaire, Diamonds are for Export". Washington Post. Retrieved 2023-10-09.
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  39. Societé minière de Bakwanga @ Mwana Africa plc
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  60. 1 2 "Kasaï-Oriental : le barrage hydro électrique de Tshiala en arrêt depuis deux semaines". Radio Okapi (in French). 2022-09-14. Retrieved 2023-10-02.
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  63. "RDC : Félix Tshisekedi recommende au gouvernement d'attribuer une partie de la concession de la MIBA à la SNEL". Radio Okapi (in French). 2021-12-04. Retrieved 2023-10-02.
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