Congo is in search of new customers for the gold that is mined in its eastern provinces

The Democratic Republic of Congo is seeking new buyers for gold from its eastern territories following its complete takeover of Primera Gold. The company’s leader announced that Primera Gold had an exclusive contract to purchase and trade gold mined in the east.

Primera Group, based in the UAE, recently divested its ownership in Primera Gold, a company located in Congo. This joint venture with the government had sparked controversy due to its exclusive rights to trade gold extracted by small-scale miners in eastern Congo, also known as artisanal miners.

Primera Gold, which is now under government ownership, expressed its interest in attracting additional investors to purchase the gold, according to Joseph Kazibaziba, the director-general, in a statement to Reuters on Tuesday.

“We are highly receptive to new buyers, and we have faced some criticism for our previous exclusivity,” he said. “We are also exploring potential buyers in Europe.”

The agreement between Congo and Primera, signed in 2022, was presented as a solution to address the issues in the country’s artisanal mining sector. This sector has been plagued by smuggling, resulting in the loss of significant tax revenue annually and providing financial support to armed groups that are causing instability in the mineral-rich eastern region.

Primera Gold was granted a majority share in two joint ventures, which provided them with exclusive rights to export artisanally-mined gold at a preferential rate of 0.25%.

Guardian A group of 14 Congolese and international organizations advocating for transparency in the mining and financial sectors, have emphasized that the government should clarify the reasons behind Primera’s withdrawal from the contract and have called for an investigation.

According to government records, Primera Group’s corporate license in UAE expired in March.

There was no response from Primera Group when asked for a comment. No response was received from a Congo government spokesperson when asked for comment.

According to a report released by the UN Security Council in June, Primera Gold has encountered difficulties in purchasing gold in eastern Congo. This is primarily due to the presence of illicit traders who smuggle the mineral to neighboring countries such as Burundi, Uganda, and Rwanda, where they are willing to pay higher prices.

According to the report, Primera Gold experienced a significant decrease in exports, dropping to 164 kilograms of gold per month in March 2024. This is a noticeable decline from the monthly average of 500 kilograms recorded between May and October 2023.