The Democratic Republic of Congo’s government revoked its authorization for the country’s first gold refinery, days before its planned inauguration, Bloomberg reported on Wednesday.

The plant, built by Congo Gold Raffinerie Sarl (CGR) in the eastern city of Bukavu, has been in the works since 2019 and was expected to produce two tons of gold a month using ore from artisanal mines in South Kivu province.

Mines Minister Antoinette N’Samba Kalambayi cancelled the company’s permit because it “did not respect its societal obligations,” according to a July 24 decree seen by Bloomberg and confirmed by both CGR and the ministry.

Neither the minister nor CGR provided further details.

CGR is owned equally by Congolese businessman Dieudonne Kasembo Nyembo and Yasin Somji, whose family has a long history of doing business, including mineral trading, in central Africa.    

The company has 30 days to appeal, according to the decree.

Just last month, N’Samba Kalambayi gave the project a “green light” in a meeting with company officials in the capital, Kinshasa.    

“The actual gold processing can begin without hesitation in July,” the ministry said in a statement on its website that cited the minister.   

On its website, CGR says its refinery located in the city of Bukavu in the South Kivu province in DRC meets the standards of the international market and brings together the smelting, refining and the design of pure gold using the latest technology machines.   

Congolese President Felix Tshisekedi has stressed the importance of local refining of the country’s minerals to increase government revenue. The mines ministry cited the president’s policy when it backed the CGR refinery last month.

Tshisekedi’s office said in a statement last week on its website that a delegation of UAE officials had signed a $1.9 billion partnership to develop several mines in the provinces of South Kivu and Maniema which are rich in gold, tin ore and tantalum. 

A separate joint venture between Congo’s government and Abu Dhabi-based company, Primera Group Ltd., began shipping artisanally mined gold from South Kivu in January.

The company, Primera Gold DRC SA, has shipped two tons of hand-dug gold through the first half of the year, the company said earlier this month. It aims to eventually export as much as 36 tons per year. Its output is sent to the UAE for refining.      

(Editing by Brinda Darasha; brinda.darasha@lseg.com)