Central African Republic: for all the gold of Ndassima

Text by: Charlotte Cosset Follow

4 min

In the Central African Republic, the company Axmin, registered in Canada and listed on the stock exchange, denounces the withdrawal of its operating license for the Ndassima gold mine, in the Bambari region, in the center of the country, in favor of a another company, probably close to Russia.

Publicity

It is not in the habit of mining companies to speak, but Axmin has decided to come out of his silence through the voice of his representative in the country, Boubacar Sidibe.

“  These projects are the fruit of our investments as well as our research. It is inconceivable to dispossess us of our projects,  ”he denounces.

The company, active since 2006 in Ndassima, estimates that it has invested around 500 billion FCFA (around 760 million euros) in research, development and community projects in the area.

The withdrawal of the mining permit from the Canadian company does not pass. Axmin has, since 2010, three permits in Ndassima (one gold mining permit and two exploration permits), in the sub-prefecture of Bambari. This mine is "  the most commercially viable known, from an industrial point of view  ," assures Sebastian Pennes, independent expert on artisanal mining.

The security situation is worsening

But the crisis broke out in the country. From December 2012, the company informed the authorities. "I am formally notifying you of the occurrence of a case of force majeure with the capture of our base yesterday by the rebels of the Seleka coalition  ", informs the president of Axmin by mail to the minister in the presidency, in charge of Mines on Christmas Eve 2012.

Since then, the situation has not changed much in this region. The UPC armed group is still in the area and occupies the mining site. In a letter from May 2019, Victor Bissekoin, prefect of Ouaka, alerted the authorities a second time to the situation in Ndassima.

“  The armed groups continue to scour the area, sequestering, at the limit, the artisanal miners who work on their behalf. Suddenly, our gold has become a source of illicit enrichment for troublemakers , ”describes the prefect in his letter. " I urge your authority to take or cause to be taken appropriate measures for the eviction of these illegal occupants and to give the legally constituted society the opportunity to resume its activities  ", he continues.

The security situation in the Bambari area, the stronghold of the armed group leader Ali Darass, remains precarious. World Food Day, scheduled for 2018, for example had to be canceled. Meanwhile, artisanal and illegal exploitation of the Ndassima mine continues. Axmin cannot return to the site. The international company refuses to enter into agreements with the armed elements on the spot to resume its activities.

Withdrawal of permits from Axmin

The case took a new turn in November 2019, when the Ministry of Mines launched an international public notice expressing interest for the allocation of the Ndassima deposit. It was then that Axmin learned that the authorities had withdrawn its licenses for "  violation of the law  ", licenses which would run for a period of 25 years. The chief of staff of the Ministry of Mines, Thierry Poulizouh, affirms that this approach is justified by the application of the mining code. The company is criticized for not promoting the site within the time limits provided for by official texts.

"  No one is above the law, legal proceedings are underway,  " said the director of the cabinet, who considers that the mining code has not been respected, despite three formal notices issued by the ministry, and that the company Axmin did not respect the time limits. "  It was therefore legal for the authorities to reassign this permit,  " said the chief of staff.

The company, registered in Canada, considers this argument to be unfounded and has therefore initiated several legal actions. Seized on January 27, 2020, the Council of State declared itself incompetent on April 7. Axmin therefore turned to the Paris Arbitration Chamber, which is provided for by their agreement in the event of a dispute. Axmin is surprised by the rapid re-allocation of the permit to a new player who leaves Canadian society wary.

Mining permit granted to another company

The Central African authorities did not wish to confirm or comment on the identity of the company which was reassigned the mining permit. According to the statements of Axmin and several official documents consulted by RFI which go in the same direction, it is the company Midas Resources "  deemed close to Russia  ", according to Africa Intelligence, which was thus chosen for the industrial exploitation of the deposit.

Little information is available on this company which has a website since 2019. It claims to be specialized in the production of diamonds, gold, cuprum and chromium.

According to the mining agreement of which RFI has consulted a copy, the company is represented by the Malagasy Final Leandric Rabenatoandro. The text also provides for the possible transfer of the rights of this permit to another company called INCOMAD. Suspicious, the Axmin company denounces the high probability that the Russians and in particular the Wagner organization could be hiding behind.

"  It is not a question of nationality but of respect for the laws  ", affirms, for his part, the chief of staff of the Ministry of Mines.

Newsletter Receive all international news directly in your mailbox

Follow all the international news by downloading the RFI application

• Central African Republic