Twangiza Mining, a gold mining company operating in the rebel-controlled South Kivu province in eastern Democratic Republic of Congo, has announced a suspension of its operations.
This decision follows an order from the M23 rebel administration due to a dispute over unpaid taxes, according to a company letter seen by Reuters.
The company, managed by Hong Kong-registered Shomka Resources, informed its employees of the immediate work stoppage in a letter dated May 8th.
General Director Chao Xianfeng stated in the letter that the suspension was “following directives from the new administration in place in South Kivu Province,” and that equipment and vehicles were being put on standby.
This development underscores the escalating tensions surrounding control of resources in Congo’s mineral-rich eastern regions.
The recent advances of the M23 rebels have placed strategically important mining assets under their administration, creating uncertainty for international companies and commodity markets.
Earlier this year, the Rwanda-backed rebels gained control of two mineral-rich eastern provinces and are currently solidifying their authority over these captured territories.
Manu Birato, the recently appointed M23 governor of South Kivu Province, asserted that Twangiza Mining must comply with new regulations and pay previously unpaid taxes.
“We are in talks with them and showing them that from now on they must start paying taxes,” Birato told Reuters.
He claimed that “the country had received absolutely nothing in taxes from this company,” alleging that the funds went into private accounts.
Birato also stated that the administration had not ordered the shutdown but rather informed the company of the new tax obligations.
“We told them they had to start paying taxes. They are having a hard time adjusting to this new requirement, given that they were used to paying nothing,” he added.
A spokesperson for Twangiza Mining declined to comment on Governor Birato’s statements.
Twangiza Mining is a joint venture between Congolese-owned Shomka Capital, holding a 65.5% stake, and Chinese Baiyin International Investments Ltd, which owns the remaining 34.5% share.
