DRC President Tshisekedi To Participate in Sale Of Initial Gold Shipment As Part Of UAE Economic Partnership.
DRC President Felix Tshisekedi will today 13.01.2023 attend a ceremony at the City of the African Union to mark the sale of the first batch of gold in the United Arab Emirates as part of a trade and economic cooperation agreement between the two countries.
The DRC and the United Arab Emirates signed a partnership contract on December 10th to combat mining fraud. This partnership resulted in the formation of two companies, Primera Gold DRC and Primera Metals DRC, which will focus on the sectors of gold, tin, tungsten, and tantalum. The goal of the partnership is to combat smuggling in these sectors.
The establishment of these two joint ventures, Primera metals DRC and Primera Gold DRC, aims to establish a proper chain of custody for artisanal gold that meets industry standards.
It is not acceptable that the DRC can only officially export 3 kg of gold per year while 15-20 tonnes of artisanal mining gold are illegally exported, resulting in a significant loss of capital for the country, as stated by the Prime Minister’s Office.
In mid-October 2022, Jean-Michel Sama Lukonde Kyenge and his ministers were given instructions to work individually in their respective sectors in order to successfully implement the various bilateral agreements signed with the United Arab Emirates during President Félix Tshisekedi’s visit in October 2021.
It’s worth noting that more than $4 billion worth of gold from conflict or high-risk areas in East and Central Africa are smuggled to international markets each year, including China, the United States, India, Europe, and the Middle East, amid a record increase in global gold prices. This was highlighted in a report by The Sentry published in February 2021.
According to the US Treasury, more than 90% of Congolese gold is smuggled through neighboring countries in the Great Lakes region, including Rwanda and Uganda, where it is often refined and exported to international markets, particularly the United Arab Emirates.
At the end of December 2022, the European Union Council added Alain Goetz to the list of individuals subject to restrictive measures regarding the situation in the DRC. The Belgian businessman has connections to the company African Gold Refinery Ltd. which is based in Uganda.
According to the European Union, since 2016, African Gold Refinery Ltd. has been involved in illicit activities such as receiving, purchasing, refining, and trading illegal gold from mines in the DRC controlled by armed groups including the Mai-Mai Yakutumba and the Raïa Mutomboki in Maniema.
In mid-March, the United States also imposed financial sanctions on the same Belgian businessman and his network of companies for the same reasons. Additionally, Alain Goetz was found guilty of money laundering and fraud in connection with the gold trade by Belgian justice in 2020.
