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Congo seeks brand-new buyers for gold mined in eastern provinces

Democratic Republic of Congo is searching for new purchasers of gold from its eastern areas after taking complete control of Primera Gold which had an exclusive agreement to buy and offer gold mined in the east, the business's head stated.

UAE-based Primera Group recently sold its stake in Congo-based Primera Gold, which had been a joint endeavor with the government, ending a questionable plan where it had been granted sole rights to trade gold dug by small manufacturers or so-called artisanal miners in eastern Congo.

Primera Gold, now wholly owned by the federal government, is eager to invite other financiers to purchase the gold, its director-general, Joseph Kazibaziba, told Reuters on Tuesday.

We are very open to brand-new buyers, we have actually been criticised for being exclusive, he stated. We are even interested in finding purchasers in Europe.

Congo's deal with Primera, signed in 2022, was touted as a. method to clean up the country's artisanal mining sector, where. smuggling has resulted in the loss of countless dollars in tax. revenue each year and assisted fund armed groups destabilising the. mineral-rich east.

The contract provided Primera Gold a bulk share in 2 joint. endeavors with special rights to export artisanally-mined gold. at a preferential rate of 0.25%.

Watchdog 'Le Congo n'est pas a vendre' (Congo is not for. sale), a group of 14 Congolese and worldwide organisations. that push for transparency in the mining and monetary sectors,. has said the government requires to offer clearness on why Primera. stepped far from the contract and required an examination.

Primera Group's business license in UAE ended in March,. according to federal government records.

Primera Group did not react to an ask for comment. A. Congo government spokesperson also did not respond to a request. for remark.

Primera Gold has actually just recently faced challenges buying gold in. eastern Congo due to illegal traders who smuggle the mineral to. Burundi, Uganda and Rwanda and are willing to pay more,. according to a UN Security Council Report released in June.

The report stated that Primera Gold's exports had decreased to. 164 kilograms of gold a month in March 2024 from a monthly. average of 500 kilograms in between May and October 2023.

(source: Reuters)