Folks, brace yourselves because this one is ugly. Erik Prince, the notorious Blackwater founder and a staunch Trump supporter, is reportedly cutting a deal with the Democratic Republic of Congo to ‘secure’ its mineral wealth… in exchange for access to those resources. Yes, you read that right. It’s a modern-day resource grab painted with a thin veneer of security assistance.
Two sources and a Congolese government official have confirmed that Prince is stepping in to help safeguard the DRC’s rich mineral deposits and, unsurprisingly, implement a tax regime. This follows a secret February letter from Congolese President Félix Tshisekedi to Trump, offering a bonanza of minerals to US tech companies in return for help quashing rebel groups. Talk about a quid pro quo! The letter even dangled mining opportunities for a potential Trump sovereign wealth fund.
Let’s be clear: this isn’t about altruism. It’s a blatant attempt to exploit the DRC’s instability for profit. And while the Trump administration is playing coy about how they’ll actually provide security (sources say no security contractors are currently planned for deployment to active conflict zones), the implications are massive.
Speaking of implications, gold took a dive on the news, briefly slipping below $3290/oz. Investors are clearly spooked. They should be. This situation smells fishy, and it could destabilize the region further.
Here’s a little context for those playing catch-up:
Resource-rich countries in Africa have long been targets of exploitation. This isn’t new. The DRC, in particular, is famously brimming with valuable minerals like cobalt, coltan, and diamonds.
Private Military Companies (PMCs), like Prince’s previous ventures, often operate in a regulatory grey area. Accountability is a huge concern. They can – and often do – exacerbate existing conflicts.
The concept of ‘resource-backed deals’ isn’t novel either, but they are exceedingly prone to corruption and benefit primarily those in power. Transparency is crucial but rarely present.
This deal underscores the geopolitical competition for critical minerals. These minerals are essential for technologies like electric vehicles and renewable energy… fueling a new scramble for Africa.
