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Gold Mining Halted in Congo Over Tax Dispute

Analysts say this disruption could affect international supply chains and further discourage investment in a country already facing complex governance challenges.
May 12, 2025

A major gold mining operation in the eastern Democratic Republic of Congo has been temporarily shut down following a dispute over taxes with the M23 rebel group, which currently exerts control over parts of the mineral-rich region.

The mining company, which operates in the South Kivu Province, suspended its activities after M23 authorities demanded additional taxes, citing their local governance over the area. The company stated that it could not comply with what it described as “unilateral and irregular” tax demands and has paused operations to safeguard its staff and resources.

The M23, a militia originally formed by mutineers from the Congolese army in 2012, has recently re-emerged as a powerful force in eastern Congo. Their resurgence has significantly disrupted the already fragile security landscape in regions rich with natural resources like gold, coltan, and cobalt — minerals critical to global technology supply chains.

The mining site had been a key contributor to both local employment and national revenue, and the sudden halt has raised alarm among economic stakeholders.

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Analysts say this disruption could affect international supply chains and further discourage investment in a country already facing complex governance challenges.

In recent months, rebel-controlled territories have increasingly operated like de facto administrations, imposing their own rules, taxes, and customs fees on businesses and civilians. The Congolese government, headquartered in Kinshasa, has condemned these actions but has struggled to regain control due to limited military capacity and ongoing instability.

The suspension of gold production also highlights the vulnerability of companies operating in conflict zones. The United Nations and regional bodies have urged all parties to pursue a diplomatic solution to avoid deepening the humanitarian and economic crisis.

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