The Twangiza gold mine in the Democratic Republic of Congo (DRC) has suspended all operations following a bitter tax dispute with the M23 rebel administration, which currently controls the region where the mine is located.
The suspension underscores the risks faced by mining operations in conflict-affected zones and raises concerns over investor confidence in the DRC’s vital mineral sector.
Twangiza is operated by Twangiza Mining SA, a subsidiary of Hong Kong-based Baiyin International Investments. The mine, located in South Kivu province, has been a key gold producer in the DRC since its commissioning in 2012.
It produced over 120,000 ounces of gold at its peak and has long been seen as a symbol of potential for responsible resource extraction in eastern Congo.
However, tensions escalated recently after the M23 rebel group, which took control of parts of North and South Kivu in 2023, imposed what the company describes as “illegal and excessive” taxes.
These demands reportedly included levies amounting to millions of dollars, far beyond the regulatory requirements established by the central government in Kinshasa.
A statement from Twangiza Mining described the taxation as “unilateral and unsanctioned,” asserting that the rebel group’s financial demands made continued operations economically unsustainable and legally indefensible. “We are committed to the rule of law and to working with legitimate governmental authorities,” the company stated, adding that it had been left with no choice but to shut down activities for the safety of its staff and to protect its assets.
The M23 rebel group, for its part, has defended the taxes, claiming they are necessary to fund public services in the areas under its control. A spokesperson for the rebel administration accused mining companies of extracting resources without adequate benefit to local communities and stated that their tax regime aimed to ensure “a fair share for the people of Kivu.”
This development has sparked alarm among both national authorities and the mining community. The DRC government, which does not recognize the authority of the M23 administration, condemned the shutdown and reiterated its commitment to stabilizing the region.
“These illegal taxes imposed by armed groups threaten not only the national economy but also the livelihoods of thousands of Congolese citizens,” said a government spokesperson.
Industry analysts warn that the Twangiza shutdown could have broader implications for the DRC’s mining sector, which contributes more than 95% of the country’s export revenue.
With investor confidence already fragile due to recurring instability, disruptions like this could deter further investment, particularly in the conflict-prone eastern provinces.
“This is a textbook example of the resource curse in action,” said Jennifer Malu, a regional analyst at the African Minerals Policy Centre. “The presence of valuable minerals draws both legitimate businesses and illegitimate power structures, leading to an ongoing cycle of exploitation, violence, and underdevelopment.”
Employees and local communities around Twangiza are already feeling the impact. Hundreds of mine workers have been sent home, and local suppliers report significant drops in income.
“Everything depended on the mine,” said Jean-Baptiste Kalume, a small trader in the town of Kamituga. “Now we don’t know what will happen to our businesses or our families.”
The situation remains fluid, with no clear resolution in sight. Twangiza Mining says it is engaging with national and international stakeholders in hopes of resolving the standoff, but has not indicated when—or if—operations might resume.
As the conflict between rebel taxation demands and corporate governance deepens, Twangiza’s fate could set a precedent for how mining firms operate under the shadow of non-state actors in one of the world’s most mineral-rich yet volatile regions.
