Congo to Grab Full Control of Gold Export Joint Venture

SEATTLE (Scrap Monster): The Democratic Republic of Congo (DRC) announced its decision to take full control of the gold export joint venture created in partnership with the UAE. The joint venture agreement on gold partnership between the two parties was originally valid for a period of 25 years.

The country had initiated the joint venture Primera Gold DRC SA in collaboration with Abu Dhabi, UAE-based Primera Group Ltd. with the aim of combating gold smuggling that was allegedly fueling conflicts in the country’s eastern provinces. The partnership recorded strong sales of 5 tons of hand-mined gold in the first year of operation. However, the sales recorded significant decline since then, thereby forcing the country to put an end to the joint venture project.

In an announcement, Felix Tshisekedi, President of Congo said that it will purchase all of the shares that belong to Primera Group. The purchase price will be finalized after the ongoing discussions.

As per reports, Congo will continue to manage the company. Meantime, Primera Group plans to develop a separate venture that will focus on refining tin, tantalum and tungsten from the region.

The deal had granted the little-known UAE firm with exclusive rights to export artisanal gold from Congo at preferential rates.