By: Ecofin agency

The Democratic Republic of Congo (DRC) is actively engaged in discussions to establish agreements for developing new industrial gold mines. Mines Minister Louis Watum confirmed this in a Bloomberg interview published on September 25. This announcement coincides with a favorable market for gold, with prices trading above the record level of $3,700 per ounce on September 26.

Gold prices have already gained over 40% since the beginning of the year. While the minister did not explicitly highlight this factor, the announced measure forms part of initiatives designed to limit losses from gold smuggling, which reportedly approaches 60 tonnes annually. To address this, Congolese authorities are engaging with several mining companies, including Canadian Barrick Mining, the operator of the Kibali mine, which accounts for approximately 90% of national gold production.

Bloomberg reported that Minister Watum said the government is holding multiple talks, with potential agreements expected soon, involving both established miners such as Barrick and prospective new industry entrants.

Currently, few details have emerged regarding the progress and specifics of these discussions. However, rising gold prices typically incentivize mining companies to inject new investments into projects. CRU analyst Olivier Blagden told Ecofin Agency that rising prices trigger a “gold rush” effect, as investors and companies rush to seek new opportunities.

Pending further clarification, the DRC already possesses several significant gold projects. These include Adumbi, a deposit holding 3.66 million ounces of mineral resources, operated by Canadian mining company Loncor Gold. Avanti Gold's Misisi project also hosts a deposit with over 3 million ounces of inferred resources.