Insecurity Halts Operations of DRC Gold Trading Amid M23 Occupation
DRC Gold Trading SA, a joint venture between the Democratic Republic of Congo and the United Arab Emirates, is no longer able to operate due to the growing insecurity in the region, worsened by the occupation of parts of South Kivu by Rwandan-backed M23 rebels.
The company, founded in January 2023, had been pivotal in regulating the gold supply chain in the northeast region of the DRC, where artisanal gold mining is prevalent.
DRC Gold Trading SA had a significant role in cleaning up the gold supply chain by reducing fraud and ensuring that revenues from gold trading were channeled through official financial systems.
The company required cooperatives, traders, and exporters to use local banks for transactions, aiming to enhance transparency and prevent illicit trading.
Prior to the company’s establishment, only about 25 kilograms of artisanal gold were officially exported annually from South Kivu.
However, after just one year of operation, that figure surged to 5,047 tonnes, generating around $300 million in official revenue, as documented by RFI.
The company’s goal for the current year was to recover 12 tonnes of gold. However, due to the ongoing occupation of parts of the province by the M23 rebels, DRC Gold Trading SA is now unable to meet this target and has only been able to recover 2 tonnes so far.
Although artisanal mining continues, the revenue generated no longer passes through official channels, undermining the efforts to regularize the sector.
DRC Gold Trading SA, previously known as Primera Gold, was launched by President Félix Tshisekedi as part of a broader effort to regulate the mining industry.
The insecurity in the region has led to several companies, including Bisie Alphamin, a US-based tin mining company in Walikale, North Kivu, suspending their operations due to the deteriorating situation. Bisie Alphamin was mining one of the world’s largest tin reserves in the area.
The suspension of operations by these key players highlights the ongoing challenges in the region, where both the gold and tin mining sectors are being severely impacted by the escalating conflict.
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