Gold Prices Surge as DRC Poised for Increased Production in 2024
The price of gold has stabilized above $2,400 per ounce, with recent trading at $2,412 per ounce, nearing its historic high of $2,450 reached in May 2024.
This positive trend comes as welcome news for the Democratic Republic of Congo (DRC), which is anticipating a rise in gold production this year.
According to data from Bloomberg and other sources, gold prices have surged by 17% since the beginning of 2024. This increase has occurred despite challenges such as high interest rates and persistent inflation.
On July 11, 2024, gold prices rose by 1.9%, driven by expectations of a potential rate cut by the US Federal Reserve in September and continued demand from central banks and Chinese buyers.
For the DRC, which exported 34.53 tonnes of gold worth $1.56 billion in 2023, the rising gold price is expected to translate into higher revenues from the gold sector, including taxes, royalties, and mining interests.
Gold production in the DRC is anticipated to increase in 2024, particularly if forecasts for the Kibali mine, the continent’s largest gold mine, prove accurate. Barrick, which owns a 45% stake in Kibali alongside AngloGold Ashanti (45%) and the DRC Government (10%), predicts the mine could produce between 711,000 and 800,000 ounces of gold in 2024, up from 762,000 ounces in 2023 and 750,000 ounces in 2022.
Initially, Barrick had projected a gold price range of $1,800 to $2,000 per ounce for the year. The DRC’s gold exports in 2023 marked the highest level in the past five years.
In addition to industrial mines like Kibali, which accounted for 85% of the exported volumes, the DRC also produces artisanal gold. Last year, artisanal gold exports totaled 5,181.70 kg, valued at $306 million.
