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Challenges in Eastern DR Congo with Chinese Gold Mining Companies: An Overview

kent-jackson by kent-jackson
October 24, 2024
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Challenges in Eastern DR Congo with Chinese Gold Mining Companies: An Overview
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Italian Priest Fights Against Illegal Gold Mining in DRC

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Italian priest Davide Marcheselli has been a vocal advocate against Chinese companies illegally mining gold in Kitutu, a town in the eastern Democratic Republic of Congo. He highlights the detrimental effects of mining on the town, including pollution of rivers and destruction of fields. The rampant mining activities by foreign companies, particularly Chinese-owned ones, have been carried out without permits and without declaring profits, as reported by local authorities.

Civil society groups and church members in Kitutu have courageously stood up against the powerful mining businesses that often have influential connections. This resistance has shed light on the corrupt practices that have plagued the region for years, with officials and leaders benefiting from these illegal activities.

Local authorities took action in July when South Kivu governor Jean-Jacques Purusi suspended illegal mining in the province until companies comply with Congolese mining laws. This move aimed to force companies to renew their mining permits, some of which have been expired for decades. Since the ban, numerous companies, many of which operated in the shadows, have sought authorization to resume their operations.

Challenges in Controlling Artisanal Mining and Chinese Partnerships

In Kamituga, just 40 kilometers from Kitutu, gold mining remains a prevalent activity, especially among artisanal diggers. Artisanal mining, though forbidden to foreigners by the country’s mining code, persists with the collaboration of local cooperatives with Chinese companies. This partnership allows Chinese firms to exploit resources through intermediaries, evading regulations and oversight.

The Bureau of Scientific and Technical Study (BEST) revealed that around half of the Congolese cooperatives in South Kivu are involved in partnerships with Chinese companies. This arrangement poses challenges for monitoring and regulation, as access to mining sites is restricted, and inspection efforts are routinely blocked. The lack of transparency raises concerns about the undisclosed profits and quantities of gold extracted by Chinese entities.

Emergence of Gold Export Monopoly and Decline of Regulation

In response to rampant illegal gold exports, the Congolese government granted a monopoly on gold exports from South Kivu to state-owned business Primera Gold in December 2022. The aim was to curb the illicit trade of gold to neighboring countries like Rwanda and strengthen control over the mineral trade. However, the monopoly has faced operational challenges, leading to an increase in black-market transactions and a decline in regulatory oversight.

Despite efforts to regulate the gold industry, Chinese companies operating in the region continue to evade scrutiny and accountability. The lack of cooperation from these firms, as noted by Governor Purusi, demonstrates the ongoing struggle to address the illicit practices of foreign entities in the mining sector.

The plight of illegal gold mining in the Democratic Republic of Congo underscores the complex dynamics between foreign companies, local cooperatives, and regulatory authorities. While recent interventions have aimed to address these challenges, sustained efforts are needed to ensure transparency, accountability, and sustainable mining practices in the region.

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