The Democratic Republic of the Congo is in talks with a Texas businessman who has been ally with Donald Trump.
Gentry Beach, chairman of investment firm America First Global in 2016 and former financial co-chair of Trump’s campaign, is part of a consortium negotiating rights to the Rubaya Coltan mine, said Congolese officials and those familiar with the issue.
The mine, located outside Goma city in eastern Congo, was at the heart of the trade of smuggling coultans, which was used to fund one of the deadliest wars, in Africa.
Lubaya, which produces about half of Dr. Congo’s Koltan, was captured in January by the M23 rebels supported by Rwandan. The mine is considered by geologists as one of the most commercially promising sources of tantalum and niobium used in the electronics industry.
Those involved in the debate hope that once the transaction is completed, the mine will become part of the US investment that underpins the Trump administration’s novel approach to end the fight between Dr. Congo, Rwanda, and the proxy militia.
Washington negotiated a peace settlement with war parties — a Trump signature-trading-style diplomacy example of diplomacy, hanging from US investments in mining and infrastructure, and hanging from mining and infrastructure investments.
According to Congo officials, Lubaya was one of many assets promoted by Dr. Felix Chisekedi, Congo, when he first approached Washington in February when he first offered mining rights.
The Rubaya mine is controlled by various militias as the 30-year conflict flows in decline © Getty Images
Both Washington and Kinshasa hope that the flowing trade will dilute China’s dominance with Africa’s richest mineral storage. Dr. Congo accounts for around 70% of the world’s cobalt, and the largest reserves of gold, copper, coltan, tin and diamond on the continent.
“When the US intervened, they wanted to frame their approach to settlement in a different way than they had before,” said one of the plan’s local participants, on condition of anonymity. “They were looking at what the business and economic aspects of the transaction are that will allow the region to thrive, so we won’t go back to this.”
A former hedge fund manager and longtime college friend of Trump’s son Donald JR, Beach has experience with Doctor Congo dating back to his previous 2004 mining venture. Beach was also involved in Dr. Congo’s venture with late Congo-born basketball legend Dikembe Mutombo.
Donald Jr. and Beach are old college friends, but the president’s son is not involved in the beach business venture, according to Donald Jr.
Refusing to comment, America First Global is part of a consortium that includes Swiss product group Mercuria, and hopes to develop the mine with a joint venture with Congolese State Miner Sakima. Mercuria also bought off-takes from the mines, although she didn’t comment. This could require investments of more than $500 million, according to officials.
“Rubaya is an important part of the peace process. We want to dramatically expand it, reorganize it, make it a world-class example of how to do mining,” said one consortium.
The White House did not respond to requests for comment.
Dr. Congo and Dr. Rwanda signed an agreement on Friday to end the conflict. The conflict goes back to the aftermath of the 1994 genocide, when millions of refugees fled across the border.
Foreign ministers from both countries have signed a peace agreement in Washington, with Trump welcoming a true society, saying that Trump was “a great day for Africa and a great day for the world.”
However, it remains unknown that the Rwandan-backed M23 rebels will be persuaded to withdraw from the territory they control, or to abandon cash cows such as Rubaya.
Authorities may support some of their US investments as part of a separate strategic mineral agreement with Dr. Congo, authorities said.
The components of the settlement, designed to tell the US investment in cobalt, copper, lithium mines and infrastructure, remain in some way separate, according to those familiar with the consultation. The DFC did not respond to requests for comment.
Lubaya became synonymous with hellish circumstances and the plundering of Dr. Congo’s wealth by his neighbor.
Reports by UN experts say that 30 years of conflict has declined and has been controlled by various militias as they are often smuggled into international markets through Rwanda and Uganda.
In the long run, some of the Koltans mined at the site will be legally exported through Rwanda and processed for export at new smelters in Kigali. The smelter will be built by an independent consortium consisting of Mercuria, Beach’s America First Global and Rwandan State Investor Ngali Holdings, according to people familiar with negotiations.
Given the central role Rubaya has played in fostering conflict, some local experts are skeptical of the plan. However, those familiar with the issue argued that the deal was “about building bridges for all business.”
Additional Reports by Alex Rogers and Guy Chazan
