DRC Gold Trading SA, a partnership between the Democratic Republic of Congo and the United Arab Emirates, has been forced to halt its operations due to increasing insecurity in the region, exacerbated by the occupation of parts of South Kivu by M23 rebels backed by Rwanda.
Founded in January 2023, the company played a critical role in regulating the gold supply chain in northeastern DRC, an area known for its artisanal gold mining.
One of DRC Gold Trading SA’s major contributions was its efforts to clean up the gold supply chain, combating fraud and ensuring that revenues from gold transactions flowed through official financial channels. The company mandated that cooperatives, traders, and exporters conduct transactions through local banks to improve transparency and curb illicit trading.
Before the company’s establishment, South Kivu officially exported only about 25 kilograms of artisanal gold each year. However, within just one year of operation, that number surged to 5,047 tonnes, generating approximately $300 million in official revenue, according to RFI.
The company had set a target of recovering 12 tonnes of gold for the current year. However, the ongoing occupation by M23 rebels has left DRC Gold Trading SA unable to meet this goal, with only 2 tonnes recovered thus far.
While artisanal mining continues in the region, the revenue no longer passes through official channels, undermining the efforts to formalize the sector.
Previously known as Primera Gold, DRC Gold Trading SA was launched by President Félix Tshisekedi as part of a broader initiative to regulate the mining industry.
The escalating insecurity has also forced other companies, such as Bisie Alphamin, a U.S.-based tin mining company in Walikale, North Kivu, to suspend operations. Bisie Alphamin was extracting one of the world’s largest tin reserves in the area.
The suspension of operations by these key players underscores the severe impact the ongoing conflict is having on both the gold and tin mining sectors in the region.
