Barrick Urges DRC to Strengthen Gold Mining Policies Amid Market Surge
Gold prices recently hit their highest level in a week, driven by escalating geopolitical tensions and renewed expectations of interest rate cuts in the United States.
Against this backdrop, Cyril Mutombo, Country Director for Barrick Mining in the Democratic Republic of Congo (DRC), has called on the Congolese government to enhance its mining policies to attract more gold-focused investment.
Speaking during a panel on Thursday, June 12, 2025, at DRC Mining Week, Mutombo emphasized the need for a more investor-friendly environment to fully capitalize on the country’s gold potential.
As of 9:30 a.m. on the same day, spot gold had risen 0.9% to $3,383.79 per ounce—its highest since June 5—while U.S. gold futures climbed 1.8% to $3,404.60.
Analysts attribute this rise to continued instability in the Middle East, weaker-than-expected U.S. economic data, and speculation about forthcoming Federal Reserve rate cuts.
Mutombo pointed to several factors driving the gold rally: “Geopolitical uncertainty, trade tensions, a weakening U.S. dollar, and increasing demand from central banks seeking safe-haven assets are all playing a role. Some analysts are projecting prices could approach $4,000 per ounce,” he explained.
However, he warned that potential economic slowdowns could reverse this trend, urging proactive investment to mitigate such risks.
“For the government, higher gold prices mean higher tax revenues—but the opposite is also true. Strategic investment is necessary to absorb future shocks,” he said.
Mutombo criticized the limited impact of artisanal mining in the country, noting its links to conflict and inefficiency.
“Artisanal mining contributes very little and often fuels instability. The DRC must create a structured policy framework to encourage the development of more industrial gold mines,” he said.
“A country with this kind of mineral wealth should have numerous operational gold mines supported by adequate infrastructure, especially roads and power.”
He also advocated for tax reforms to attract more foreign direct investment. “Too many taxes discourage investment. Reducing them could bring in more investors, which would ultimately boost tax revenues,” he added.
On policy stability, Mutombo stressed the need for consistent regulations: “We need legal certainty.
Amending the Finance Act every year creates uncertainty that deters investors. Stability is key to long-term planning and value addition through local processing.”
He concluded by calling for the formalization of artisanal mining, arguing that it could become a viable part of the economy if properly supported.
“We need small-scale and medium-sized mines to support our youth. But right now, we barely have designated mining zones for this category,” he noted.
As a reminder, Kibali Gold Mine SA—a subsidiary of Barrick—operates one of the largest gold corridors in Africa, located in the Haut-Uélé province in northeastern DRC, near the town of Durba in Watsa territory.
