Chinese companies have partnered with local cooperatives to bypass the ban on artisanal mining by foreign entities in the Democratic Republic of Congo (DRC). After the South Kivu governor suspended illegal mining in the province, 540 local companies quickly emerged, seeking permits.
For years, an Italian priest, Davide Marcheselli, has opposed illegal gold mining in Kitutu, a town in South Kivu, where mining activities have polluted rivers and destroyed farmland. Local authorities report that hundreds of foreign firms, mostly Chinese-owned, are involved in gold mining without proper permits or declaring profits.
Civil society and church groups in Kitutu have been among the few challenging these powerful mining businesses, which allegedly have connections with influential figures in the region. Local leaders and officials reportedly benefit financially from these companies.
The South Kivu governor halted “illegal” mining activities, demanding compliance with DRC mining laws, including renewing long-expired permits. However, numerous companies have since rushed to obtain authorization to resume operations. Though initially 117 companies were invited to address compliance, 540 companies appeared seeking permits.
Chinese companies circumvent restrictions on foreign involvement in artisanal mining by partnering with local cooperatives. In towns like Kamituga, small-scale mining continues under these cooperatives, with Chinese partners operating behind the scenes. According to the Bureau of Scientific and Technical Study (BEST), about half of the cooperatives in the province work with Chinese companies.
Mining sites operated by these cooperatives are heavily secured, with access restricted even to inspectors. The lack of transparency extends to the commercial side, where little is known about production levels or profit distribution. Gold from these operations is transported to Bukavu, where traders often declare only a portion of their goods, selling the rest illegally. This gold is then smuggled to Rwanda.
The DRC government granted a monopoly on gold exports from South Kivu to the state-owned Primera Gold, aiming to curb illegal exports. However, Primera Gold has struggled to control the black market and lacks liquidity to purchase gold effectively.
Despite efforts to regulate the industry, Chinese companies continue to operate largely unmonitored, avoiding scrutiny through complex networks. Local authorities, including the governor, face difficulties in obtaining information, as representatives often redirect inquiries to officials in Kinshasa, limiting oversight.
