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Societé Minière de Bakwanga

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Societé minière de Bakwanga (abbreviated MIBA ) is a diamond mining company based in the Democratic Republic of the Congo . Historically, the company was the largest diamond producer in the world by volume. However, following decades of decline, the company currently produces only a small minority of the DRC's diamonds.

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57-742: MIBA operate near Mbuji Mayi , in Kasai-Oriental Province in south central DRC. Approximately 80% of MIBA's stock is owned by the Congolese government, with 20% owned by Asa Resources Group . During Belgian rule , diamonds were first discovered near the Bushimaie river in December 1918 by George Young, a Scottish geologist employed by the Compagnie du chemin de fer du bas-Congo au Katanga . The Société minière du Bécéka (Mibeka)

114-567: A burgomaster : Bipemba , Dibindi , Diulu , Kanshi and Muya . This division into communes has been in effect since Ministerial (Departmental) Order No. 83 of March 4, 1968 of the Minister of the Interior . The region where the city of Mbuji-Mayi now stands was once a cluster of villages on land owned by the Bakwanga clan. Diamonds were first discovered in the area as early as 1907, but

171-478: A Luba tribal chief, declared himself ruler of the secessionist Mining State of South Kasai on Aug. 8, 1960 and established the city, then still known as Bakwanga, as his capital. In April 1961, Kalonji declared himself as emperor of the region in a traditional tribal ceremony and then returned to Bakwanga, where he was "carried through crowds of chanting, singing and cheering Balubas," and dancing continued outside his royal palace there for four days. The celebration

228-502: A command post that monitored the population, which made indefinite residence in the area almost impossible to establish. There was limited economic activity besides the company-run mining, with even limited agriculture, and the city's population remained low, at approximately 39,830 by the late 1950s. As the city grew, more and more infrastructure needs required investment in roads, public works and hospitals. While several primary schools were developed for workers, until independence, there

285-409: A company town under tight control of Belgian economic interests meant it was neat and orderly, it also meant that the city's buildings and homes, including those of top MIBA executives, were sometimes demolished to access the diamonds. In the earlier years, most of the diamonds mined in the area came from one large MIBA-controlled mine on the city's outskirts, but diamonds could also be easily found in

342-467: A monopoly on marketing all the production from MIBA, allowing other buyers to purchase some of MIBA's production at monthly auctions. 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 ] . After a failed bid to float

399-611: A new university. These investments and position as largest employer made Nzemba one of the most powerful men in the region, and de facto governor of Mbuji-Mayi. Nzemba was considered one of the more powerful players in Mobutu's political party, the Mouvement Populaire pour le Revolution (MPR), but also called himself a "brother" of Étienne Tshisekedi , a popular local political figure and Mobutu's most significant political opposition. During his time as head of MIBA, Nzemba

456-494: A record production rate with 18 million karats of diamonds. But by 1963, the numbers had fallen dramatically in the wake of years of turmoil, including an attempt to establish the region as the independent Mining State of South Kasai . In that year, the company 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

513-806: A relationship with De Beers consortium, allowing the Oppenheimers to import the DRC's diamonds to London. 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). 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

570-546: A report in 2002 about dozens of people being shot dead in the diamond fields of Mbuji-Mayi, with most victims suspected of illegal mining . No state agents were known to have been prosecuted for the killings. Poverty lures in illegal miners to MIBA diamond concessions where they may be shot or detained in quarters with poor living conditions. Köppen-Geiger climate classification system classifies its climate as tropical wet and dry (Aw). Jonas Mukamba Kadiata Nzemba Jonas Mukamba Kadiata Nzemba (born January 4, 1931)

627-461: 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. These consisted of the 1.4 MW Tshiala 1 , 7 MW Lubilanji 1 , and 10.08 MW Lubilanji 2 . The Lubilanji 2 expansion of the plant

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684-538: Is a politician from the Democratic Republic of the Congo and former CEO of the state-run diamond company. Between August 1965 and October 1968 he was governor in turn of South Kasai , Kasaï-Oriental , Équateur and Orientale Province . He was again governor of Équateur Province between 27 August 1980 and 19 March 1983. Zaire's president Mobutu Sese Seko appointed Nzemba the chief executive officer of

741-585: Is credited with creating the Conference pour le Developpement Economique de Kasai Oriental (CDEKO), a regional economic development group in the early 1990s. Nzemba also backed the creation of the University of Kasai , which was jointly sponsored by MIBA and the local Catholic Church, and which became the home base of CDEKO. The new organization spearheaded economic growth in Mbuji-Mayi, helped support

798-525: Is credited with creating the Conference pour le Developpement Economique de Kasai Oriental (CDEKO), a regional economic development group in the early 1990s. Nzemba also backed the creation of the University of Kasai, which was jointly sponsored by MIBA and the local Catholic church, and which became the home base of CDEKO. The new organization spearheaded economic growth in Mbuji-Mayi, helping support

855-596: Is not known. Estimates range from a 2010 CIA World Factbook estimated population of 1,480,000 to as many as 3,500,000 estimated by the United Nations in 2008. Mbuji-Mayi lies in Luba country on the Mbuji-Mayi River . The name Mbuji-Mayi comes from the local language, Tshiluba , and translates as "Goat-Water," a name deriving from the great number of goats in the region. Despite its large population,

912-607: The Asa Resources Group ). 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. In October 2008, the MIBA employees went on strike several times for not being paid for more than 20 months. Production

969-466: The First Congo War . In 1994, the economy of Mbuji-Mayi 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

1026-510: The Bakwanga diamonds. Nine of the ten pipes in the Mbuji Mayi cluster were located within the "Polygon" mining license owned by Bécéka (later MIBA). In 1956, MIBA also discovered the Tshibwe cluster of kimberlite pipes, and mined these for a while. In the 1950s, it was estimated that the city, then known as Bakwanga, and its surrounding area had the world's most important deposit of diamonds, with at least 300 million karats. While about 95% of

1083-519: The Belgian colonial administrators, to the benefit of the company's Belgian management. The company's profits were also commandeered by the South Kasai government of rebel leader Albert Kalonji . In 1961, those profits were estimated to be $ 12 million. Despite the smuggling and regional turmoil, the company was extremely dominant in the world's diamond trade. In 1963, MIBA produced 80 percent of

1140-447: The Congolese minister of mines and his deputy; the previously unclear owner of Emaxon was revealed to be Dan Gertler 's DGI Group . This deal was criticized by a 2005 Congolese parliamentary commission headed by Christophe Lutundula who recommended the contract be renegotiated. The offtake agreement with Emaxon expired at the end of 2007. In 2006, Umicore subsidiary Sibeka , sold its interest in MIBA to Mwana Africa (now known as

1197-450: The MIBA concession. In response to the UN report, DRC president Joseph Kabila suspended Okoto. 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. While the offtake agreement was initially signed in secret, the arrangement ended up being publicized three months later during a dispute between

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1254-770: The Oryx company on the Alternative Investment Market by selling to Petra Diamonds in June 2000, 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

1311-421: The area's streams and waterways, making it possible for anyone to collect them. As of 1963, Mbuji-Mayi-based MIBA was the source of 80 percent of the world's industrial diamonds and 57 percent of all diamonds. Mbuji-Mayi grew rapidly upon Congolese independence in 1960 with the immigration of members of the Luba ethnic group from different parts of the country. Shortly after independence, Albert Kalonji ,

1368-577: The behest of the Félix Tshisekedi administration, the state miner Gécamines gave MIBA $ 5 million to revamp operations. 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). MIBA has

1425-574: The chief executive officer of MIBA one of the most powerful men in the region, and the de facto governor of Mbuji-Mayi. Nzemba, who was appointed by Mobutu in 1986, was considered one of the more powerful players in Mobutu's political party, the Popular Movement of the Revolution (MPR), but he also called himself a "brother" of Étienne Tshisekedi , a popular local political figure and Mobutu's most significant political opposition. Nzemba

1482-473: The city remains remote, having little connection to surrounding provinces or to Kinshasa and Lubumbashi. However, Mbuji-Mayi is the traditional centre of industrial diamond mining in Congo, with it being located on top of one of the largest known deposits in the world. Air travel is provided through the Mbuji Mayi Airport . Mbuji-Mayi is made up of five communes (municipalities), each headed by

1539-658: The city's main business remains the diamond trade. In January 2015 there was an outbreak of tuberculosis (TB), including multi-drug-resistant TB in the Mbuji-Mayi Central Prison. The CDC investigated and found the prison was filled to six times its capacity giving each prisoner a fixed spot less than about 0.25 square meters (2.7 square feet) in a cell. About half of the inmates were malnourished . These conditions, combined with poor ventilation, lack of sunshine, and lack of TB screening, had allowed TB to spread for years. Amnesty International published

1596-546: The city, Nzemba quickly switched sides. When the city fell to the rebels on April 4, 1997, looting by both sides took a toll on the city, particularly MIBA's mining operations. Nzemba was also summoned to Goma to speak with Kabila, who held him for several days, prompting his family to purchase advertising in newspapers publicising their concerns for his safety. Nzemba was released shortly after, but MIBA began making "voluntary contributions" to Kabila's war, an estimated $ 5.5 million in 1997 and 1998. In October 1998, Mbuji-Mayi

1653-468: 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. 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

1710-408: The country's diamond production, ending the arrangement with Britmond. However, marketing arrangements through De Beers were reëstablished in early 1983. Sozacom was dissolved in 1984, due to its tendency to divert receipts from the Zaïre treasury. 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

1767-549: The country. However, following the assassination of Laurent Kabila , the deal was revoked in April 2001. 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. Also in October 2002, Amnesty International reported that dozens of people were being shot every year on

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1824-458: The development of new agricultural and beer industry expansion around the city and launched Wetrafa , a locally owned airline. Mobutu's willingness to let Nzemba control the province through MIBA came at a price, as Nzemba may have skimmed as much as $ 1.5 to $ 2 million a month to send to Mobutu's personal bank accounts. Although Nzemba and MIBA's largesse helped Mbuji-Mayi maintain some semblance of infrastructure and social services, at least by

1881-410: The development of new agricultural and beer industry expansion around the city, and launched Wetrafa, a locally owned airline. But, Mobutu's willingness to let Nzemba control the province through MIBA came at a price - Nzemba may have skimmed as much as $ 1.5 to $ 2 million a month to send to Mobutu's personal bank accounts. As the First Congo War broke out, Nzemba initially sided with Mobutu against

1938-590: The diamonds found near Bakwanga were relatively low value bort , the grade was very high and relatively cheap to mine. On August 27, 1960, during the Congo Crisis , the Bakwanga mine was closed due to the Invasion of South Kasai . When it reopened on January 1, 1961, Bécéka took over management of the Bakwanga mine. In 1962, Mibeka created the Societé Minière de Bakwanga (MIBA) as a subsidiary. This

1995-585: The major diamond producers in the area. The city had always been a major source of the world's diamonds and that did not change after independence, nor did the age-old tradition of diamond smuggling. But after independence, that ability of the government to control the diamond smuggling quickly eroded and diamond smuggling dramatically increased. The black market quickly eclipsed the official business, and in 1963, MIBA officially recorded producing 1.4 million karats of diamonds, while smugglers exported between 4 million and 6 million more karats. The city lacks much of

2052-475: The only source of electricity, but frequent power outages led residents to other sources of heat and light, mainly wood and charcoal leading to widespread deforestation in the area. As the First Congo War broke out, Nzemba initially sided with Mobutu against the rebels led by Laurent-Désiré Kabila , but as Kabila's Alliance of Democratic Forces for the Liberation of Congo-Zaire (AFDL or ADFLC) approached

2109-528: The organization and classic European architecture that other major cities in the DRC inherited from the Belgian colonists. Journalist Michela Wrong, described Mbuji-Mayi as "a curiously soulless settlement, with no tangible centre ... It is purely functional conurbation, dedicated to making money, with little left over for less focused activities." Even today, much of the city revolves around the Avenue Inga, where diamond and mineral buyers have set up shop and

2166-489: The political vacuum, MIBA stepped in. In the place of the federal government, MIBA invested heavily in the region by repairing roads, paying soldiers and supplying water and electricity to the city from its own power station. The company set up a social fund of $ 5 to $ 6 million a year, roughly 8 percent of its annual budget. This money went to repair infrastructure and to fund a new university. The investments and its position as largest employer made Jonas Mukamba Kadiata Nzemba

2223-399: The political vacuum, MIBA, stepped in. In the place of the federal government, MIBA invested heavily in the region - repairing roads, paying soldiers and supplying water and electricity to the city from its own power station. The company set up a social fund of $ 5 to $ 6 million a year, or roughly 8 percent of its annual budget. This money not only went for infrastructure repair, but also to fund

2280-458: The production line, due to theft. 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. 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

2337-529: The rebels led by Laurent-Désiré Kabila , but as Kabila's Alliance of Democratic Forces for the Liberation of Congo-Zaire (AFDL or ADFLC) approached the city, Nzemba quickly switched sides. Nzemba declared that he was ready to work with AFDL a week before the fall of Mbuji-Mayi. When the city fell to the rebels on April 4, 1997, Nzemba was summoned to Goma to speak with Kabila, who held him for several days, prompting his family to purchase advertising in newspapers publicizing their concerns for his safety. Nzemba

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2394-459: The standards of Zaïre, the city still struggled. Electricity was spotty, the university was broken down and the road system disintegrated with the rain. Outside of the sector of the city controlled by MIBA, the road network was virtually nonexistent, and in 1991, the entire city had only about 19.7 km of paved roads, all in poor condition. The state-run power plant went out of service in 1990, with an 11.8 mW hydroelectric plant run by MIBA as

2451-572: The state's main diamond mining company, the Societé minière de Bakwanga (MIBA) in 1986. Based in the city of Mbuji-Mayi, formerly Bakwanga, the company provided as much as 80 percent of the world's industrial diamonds, but other than mining operations which provided much-needed hard currency, the region was widely neglected by Mobutu and the central government. Throughout the 1980s and 1990s, Zaire and Mobutu paid little attention to Mbuji-Mayi, offering almost no money to build roads, schools or hospitals. In

2508-412: The true value of the find was not recognised until 1913. Following the discovery, a mining camp designed to house miners and company officials of the Societé minière de Bakwanga (MIBA) was developed in the area. The young city, known at the time as Bakwanga, grew quickly but around strict planning by MIBA, which divided the community into labor camps, mining areas and living quarters. The city's growth

2565-487: The turbines were still working, at a capacity of 3.2 megawatts. MIBA formerly operated a cargo airline known as MIBA Aviation . Mbuji Mayi Mbuji-Mayi or Mbujimayi (formerly Bakwanga ) is a city and the capital of Kasai-Oriental Province in the south-central Democratic Republic of Congo . It is thought to be the second largest city in the country, after the capital Kinshasa and ahead of Lubumbashi , Kisangani and Kananga , though its exact population

2622-576: The world's industrial diamonds and 57 percent of all diamonds. However, from 1961 to 1967 nearly all of the production was exported illegally through neighboring countries, such as the Republic of Congo . In the 1960s, Mobutu looked into ways to sell Zaïre's industrial diamonds. He entered agreements with the Belgian-American businessman, Maurice Tempelsman , and together they held significant interests in MIBA. Tempelsman helped Mobutu set up

2679-431: Was captured again on 4 October 1962 when ANC forces retook Bakwanga, effectively ending the region's independence. Soon after the end of the secession, Bakwanga was renamed Mbuji-Mayi after the local river in an attempt to signify a Luba intra-ethnicity reconciliation. Throughout the 1980s and 1990s, Zaïre and Mobutu paid little attention to Mbuji-Mayi, offering almost no money to build roads, schools or hospitals. In

2736-499: Was during the Congo Crisis when the DRC established its independence from Belgium. Mibeka transferred all of its exploitation rights and Congolese assets to MIBA while relocating all of its Belgian assets to Belgium. Independence from Belgium did not necessarily slow the extraction of diamonds, but it did seriously affect MIBA's dominance of the region's diamond trade. In 1959, the year before Congolese independence, MIBA reportedly produced 14.1 million karats of diamonds, and in 1961 set

2793-451: Was expected to help, but not be enough to substantially solve the city's water crisis. The Pan China company doing the work will rehabilitate the city's pumping station , extend the distribution network, construct water towers , and add metering and administrative buildings. As a commercial center, Mbuji-Mayi handles most diamond mining , panning , and production in the Congo. Societé minière de Bakwanga and Diamant International are

2850-479: Was finalized after a $ 5 million contract with Anglo Belgian Corporation in July 2000. In 2012, MIBA ended a contract with the company Hydroforce Congo which had managed the hydropower plant for over four years. 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. As of 2022, only two of

2907-413: Was no higher education available for the native population. The area around Mbuji-Mayi is one of the richest sources of mineral wealth in the world. In the 1950s, it was estimated that the Mbuji-Mayi area had the world's most important industrial diamond deposits, containing at least 300 million karats of diamonds. The city was constructed on top of the diamond deposits, and while the city's reputation as

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2964-413: Was not explosive, and planning was done with the needs of the mining company in mind, not the development of the region as a general population centre. In fact, fearing theft of the company's diamond resources, the MIBA actively discouraged building in the region and closely monitored who went in and out of the region. Every person in the region needed a permit allowing them to be there, and registration at

3021-418: Was occupied by both Zimbabwean and Chadian troops as they poured into the country to back up Kabila as the First Congo War began to grow. As of 2019 some residents were obtaining water from local rivers which contributed to local outbreaks of water-borne diseases such as cholera . In 2020 the DRC government launched a project to improve drinking water expected to cost at least $ 26.2 million. This investment

3078-416: Was short-lived, as the central government's Armée Nationale Congolaise (ANC) troops took control of the town and arrested Kalonji, by December 1961. After escaping from the jail in which he was being held, he briefly re-established his government. A second assault on the independent state was launched in the summer of 1962, with ANC government troops fighting poorly armed tribesmen outside of the city. Kalonji

3135-565: Was suspended between November 2008 and March 2011. 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 . 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. In August 2020, at

3192-594: Was the Zimbabwe Defence Forces , through its subsidiary Operation Sovereign Legitimacy (OSLEG). Rather than a commercial sale, the transfer was a means for Laurent Kabila to help finance Zimbabwe's military interventions in the DRC. MIBA took back control of the Sengamines area in August 2005. In 2000, MIBA hired a British-South African security consultant, Nigel Morgan , to work in security for

3249-404: Was then founded in 1919, with the specific purpose of exploiting the mineral riches in the area of Mbuji-Mayi. A controlling stake in the company was held by Société Générale de Belgique . From the start of mining, Forminière was responsible for management of the Bakwanga mine, though Bécéka maintained ownership. In 1946, geologists located the kimberlite pipes that were the original source of

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