DRC Seeks New Gold Buyers After Taking Control of Primera Gold
The Democratic Republic of Congo (DRC) is actively seeking new buyers for gold from its eastern regions after gaining full control of Primera Gold, a company previously involved in an exclusive contract to trade gold from these areas.
The UAE-based Primera Group recently sold its stake in Primera Gold, which had been a joint venture with the Congolese government.
This move ended a controversial agreement that granted Primera Gold sole rights to buy and sell gold mined by small-scale or artisanal miners in eastern Congo.
Joseph Kazibaziba, Director-General of the now government-owned Primera Gold, announced the company’s openness to inviting new investors, including potential buyers from Europe. “We are very open to new buyers; we have been criticized for being exclusive,” Kazibaziba stated.
The original deal with Primera, signed in 2022, aimed to address issues in the artisanal mining sector, where widespread smuggling has resulted in significant tax revenue losses and has fueled conflict in the mineral-rich east. The agreement granted Primera Gold exclusive export rights for artisanally mined gold at a preferential rate of 0.25%.
However, the arrangement faced criticism, particularly from the watchdog group “Le Congo n’est pas à vendre” (Congo is not for sale), which has called for an investigation into why Primera stepped away from the contract.
Primera Group’s corporate license in the UAE expired in March 2024, but the company did not respond to requests for comment. Similarly, the Congolese government has not provided any official comment on the situation.
Recent reports indicate that Primera Gold has struggled to compete with illicit traders smuggling gold to neighboring countries like Burundi, Uganda, and Rwanda, where they offer higher prices.
According to a UN Security Council report, Primera Gold’s exports dropped to 164 kilograms per month in March 2024, down from a monthly average of 500 kilograms between May and October 2023.
