CNPAV a Congolese NGO has questioned the many advantages granted to Primera Gold and Primera Metals
Félix Tshisekedi during the signing of the contract that led to the creation of the companies Primera Gold DRC (gold) and Primera Metals DRC (3T). Third-Party Rights.
BY DESKECO – 04 JUNE 2023 09:19, IN NEWS
During its press conference held on Friday June 2 in Kinshasa, Congo N’est Pas à Vendre (CNPAV) congratulated the Congolese government for the publication of the Partnership Contract on the creation of the companies Primera Gold and Primera Metals. However, the coalition also called on the government to disclose the full list of the beneficial owners of these companies, which benefit from the extremely generous tax and commercial advantages.
Primera Gold has been in the news since early 2023 after the government granted it exclusive export rights for all artisanally mined gold, coltan and tin ores produced primarily in the eastern provinces of the Congo.
“According to a representative of the company, Primera Gold has already exported more than a ton of gold since January 2023. At this rate, the Primera Gold company could achieve a turnover of over a billion dollars. “by the end of this year. By way of comparison, the Congo had exported only 42 kilos of artisanal gold for the whole of 2022, attesting to the massive fraud in this sector”, affirms the CNPAV.
Congo Not for Sale recognizes the need to put an end to the mining fraud and smuggling that has characterized the artisanal mining of gold and coltan in eastern DRC for the past two decades. However, the coalition questions the numerous commercial and tax advantages granted to Primera Gold and Primera Metals.
“Indeed, the partnership agreement which has just been published shows that the two companies will benefit from a 25-year export monopoly, Primera Gold for gold and Primera Metals – which has not yet started – for the so-called 3T sector (tin, coltan and tungsten)”, specifies this coalition of civil society.
Benefits against the Congolese state
The CNPAV affirms that the contract also provides very generous tax breaks. For the next 25 years, Primera Gold will only pay a single rate of 0.25% (a benefit “not granted to any other entity”, according to the terms of the contract). This represents 10 times less than the taxes that apply to other artisanal gold exporting companies. Concretely, if Primera Gold achieves a turnover of one billion US dollars, the Congolese State will only receive 2.5 million in taxes.
Finally, Primera Gold exports raw gold for refining in the United Arab Emirates. However, the Mining Code only authorizes refining outside when it is not possible locally. However, a refinery has been built in Bukavu.
“All these benefits were granted while the beneficial ownership of Primera Gold and Primera Metals remains opaque. Indeed, until now, the government has not yet disclosed the full list of shareholders and their beneficial owners,” laments the CNPAV.
For the latter, the partnership between the Congolese government and Primera must both contribute to the fight against mining fraud and smuggling and generate substantial revenue for the Congolese state and the provinces concerned. This is how we demand the publication of the list of all the real beneficiaries of the companies Primera Gold, Primera Metals, the shareholder agreement the abolition of the 25-year monopoly on the export of these minerals granted to these two companies as well that clarification on these huge tax breaks.
Note that it is since December 10, 2022 that the DRC and the United Arab Emirates have signed a partnership contract to fight against mining fraud. From this contract were born two companies including Primera Gold DRC (gold) and Primera Metals DRC (3 T, Tin, Tungsten, Tantalum).
