The Government of the Democratic Republic of Congo (DRC) intends to buy back the interests it does not yet hold in the company Primera Gold, a joint venture with the Primera group based in the United Arab Emirates. Which should put an end to a 25-year agreement signed in 2022 and relating to the purchase and export of artisanal gold by this company close to the Emirati political power.
According to sources, the end of the partnership comes after the collapse of Primera Gold’s gold exports this year 2024, and could be explained by the company’s recent difficulties.
In addition to the higher prices offered on the black market to artisanal miners, they report, Primera Gold has faced banking regulations limiting daily cash transactions. This means that since November 2023, gold shipments have reportedly fallen by 50%, after the company exported 5 tonnes of gold from the DRC in 2023.
Some specialists argue that this change calls into question the existence of the partnership between the Congolese Government and the Emirati group, which was supposed to fight against artisanal gold smuggling thanks to a “quasi-monopoly” on exports.
Primera Gold has a preferential tax of 0.25% on artisanal gold exports compared to 6% for its rivals.
It should be noted that Primera Group’s withdrawal from the artisanal gold sector is not synonymous with its departure from the DRC. The Abu Dhabi-based company should now focus on 3T minerals (tin, tungsten and tantalum), the other part of the partnership established with the Congolese government. The purchase and local processing of these mining products through the establishment of a refinery are notably planned.
In the DRC, gold smuggling is one of the means of financing armed groups which have bedeviled the country for decades.
Olivier KAFORO
