London, March 5th (Argus) - In the area controlled by anti-government forces in eastern Congo (DRC), the Rubaya tantalum iron mine experienced a second landslide within two months.
The Congolese Ministry of Mines stated on March 4th that this landslide has resulted in as many as 200 deaths, including as many as 70 children - although the M23 anti-government forces, supported by Rwanda, have disputed this figure since April 2024.
M23 claims that the latest landslide event followed a similar incident that caused over 200 deaths in late January. According to the Ministry of Mines and local sources, both landslides were triggered by exceptionally heavy rainfall.
The Rubaya mine is the main source of tantalum iron ore, which is used in the production of electronic components and superalloys. However, since the mine was controlled by M23, which received support from Rwanda, the materials produced by the mine have no trading qualifications according to the due diligence guidelines of the OECD. The United Nations Congo (DRC) issue expert group found that this anti-government force systematically smuggled materials from Rubaya and other occupied mines to Rwanda and conducted international sales from there. Rwanda denies supporting M23.
Since the first landslide at Rubaya, the price of tantalum iron ore has soared by 48.9%, and it is expected to continue to rise in the short term. The latest assessment by Argus on March 3rd was a price range of $170 - $180 per pound (main port CIF), but the quote has risen to above $200 per pound in the past two days.
The first landslide at Rubaya led to a tight supply of tantalum iron ore from Rwanda and a significant price increase. However, many market participants believe that the current record-high prices are an overreaction and lack support from market fundamentals.
In the past two weeks, many sellers have suspended quotations due to expectations of further price increases, exacerbating the supply shortage. Driven by the growth in demand for storage chips and tantalum capacitors due to the application of artificial intelligence, the downstream demand in the electronics industry is expected to rise this year.
