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CONGO SEEKS NEW GOLD BUYERS AFTER ENDING CONTROVERSIAL DEAL WITH UAE’S PRIMERA GROUP
Democratic Republic of Congo is seeking new buyers for its gold, says Joseph Kazibaziba, director-general of Primera Gold.
“We are very open to new buyers,” Kazibaziba told Reuters on Tuesday. “We have been criticized for being exclusive.”
Primera Gold, formerly a joint venture with UAE-based Primera Group, is now fully owned by Congo.
The exclusive rights for gold trade previously held by Primera Group have ended. “We are even interested in finding buyers in Europe,” Kazibaziba added.
The deal with Primera, signed in 2022, aimed to clean up the artisanal mining sector. This sector has faced issues with smuggling and tax revenue loss.
Smuggling has funded armed groups destabilizing the mineral-rich east of Congo. The contract gave Primera Gold a majority share in two joint ventures.
It also granted exclusive rights to export artisanally-mined gold at a preferential rate of 0.25%.
“Le Congo n’est pas a vendre,” a watchdog group, has called for clarity. They want to know why Primera stepped away from the contract.
They also demand an investigation into the matter. Primera Group’s corporate license in the UAE expired in March, according to records.
Primera Group did not respond to requests for comment. A Congo government spokesperson also did not comment. Recently, Primera Gold has struggled with illicit traders.
These traders smuggle gold to Burundi, Uganda, and Rwanda, often paying higher prices.
A UN Security Council Report from June noted that Primera Gold’s exports had dropped. Exports fell to 164 kilograms a month in March 2024.
This is down from an average of 500 kilograms between May and October 2023.
