Congo state company launches country’s first gold refinery

Democratic Republic of Congo launched its first state-backed gold refinery as it moves to formalize a trade historically linked to smuggling and conflict in the country’s mineral-rich east.

State-owned DRC Gold Trading SA is partnering with Lunga Mining SA to create DRC Gold Refinery SA with a goal of producing as much as 600 kilograms (1,320 pounds) of gold per month, the mines ministry said in a post on X.

The refinery in the city of Kalemie on Lake Tanganyika will process gold purchased from Congo’s artisanal miners, according to the ministry.

DRC Gold Trading begun operations three years ago under the name Primera with the view to capture revenue from an informal gold sector that employs hundreds of thousands of Congolese, but exists almost entirely outside official commercial networks.

The company has faced criticism from United Nations experts for lacking supply chain controls and concerns its purchases could be supporting armed groups.

After Rwanda-backed rebels took over parts of Congo’s east last year, DRC Gold Trading moved its headquarters to the capital, Kinshasa. It now buys hand-dug gold from across the country and is implementing systems to monitor its supply chain, managing director Joseph Kazibaziba told Bloomberg in January.

The company hopes to ship as much as 18 tons of gold this year, Kazibaziba said at then. That amount of bullion could fetch around $3 billion at current prices.

Kazibaziba didn’t immediately respond to phone calls and messages requesting comment on Thursday.

Lunga Mining is part of the Vinmart Group, which also owns mid-sized copper and cobalt producer Somika SAS.

(By Michael J. Kavanagh and William Clowes)