The government of the Democratic Republic of the Congo (DRC) is returning gold concessions it expropriated from Toronto-based Banro in 1998.
The land was expropriated because of what the DRC called “irregularities” involving the dates on which certain ministerial orders were issued, though Banro has always insisted it complied with the law.
In September 2001, Banro filed for judgment of default against the DRC for US$400 million, roughly what the properties are thought to be worth.
The concessions host four known deposits: Twangiza, Kamituga/Mobale, Lugushwa and Namoya. The total proven and probable gold resource is said to exceed 12 million oz.
“We are getting one-hundred per cent of the properties back,” says Arnold Kondrat, executive vice-president of Banro.
He says there has been a dramatic change in attitude since Joseph Kabila assumed control of the country from his father, Laurent Kabila, who was assasinated in 2001 an attempted coup d’tat..
“The government wants to show the world that it is a law-abiding country and that investors’ rights are protected,” Kondrat says.
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