The Democratic Republic of Congo will begin enforcing a long-delayed requirement for mining companies to offer local ownership stakes from July 31, the mines ministry said, despite concerns from some of the world’s biggest copper and cobalt miners over its impact on the sector.
Reuters previously reported that miners in Congo, the world’s top cobalt producer and second-largest copper producer, were seeking to delay enforcement of a 2018 law requiring companies to transfer 10% of their equity to Congolese nationals, including 5% for employees. No miner has yet complied, citing unresolved questions over implementation.
In January, Kinshasa ordered companies, including Glencore, Ivanhoe Mines and China’s CMOC and Huayou Cobalt, to prove compliance by the end of July or face sanctions, according to a letter reviewed by Reuters.
July 31 deadline
The mines ministry reaffirmed the July 31 deadline in a post on X on Tuesday after talks with mining companies on a decree setting out how the rule will be implemented.
“Mining companies will have to comply with the legal provisions regarding Congolese participation in their share capital,” the ministry said.
A mines ministry official confirmed to Reuters that the July 31 deadline was communicated to miners at the meeting with government officials on Tuesday.
Participants agreed that the decree should be signed after limited technical amendments, according to the post on X. An ad hoc committee was established to finalise the changes.
The post did not detail the amendments. It is not known what sanctions companies could face for non-compliance. Congo’s chamber of mines did not immediately respond to a request for comment.
As commodities prices surge, African countries are increasingly seeking a larger share of their mineral wealth.
Congolese authorities are considering interest-free loans and cooperatives to help employees acquire their mandated equity stakes.
The Central African nation already holds a free, non-dilutable 10% stake in mining projects under its 2018 code and can increase its ownership through paid acquisitions at licence renewals.
- The Democratic Republic of Congo will enforce a 2018 law from July 31 requiring mining companies to offer 10% local ownership, including 5% for employees.
- Major miners like Glencore, Ivanhoe Mines, CMOC, and Huayou Cobalt have not yet complied, citing unclear implementation details.
- The mines ministry confirmed the July 31 compliance deadline after discussions and plans to finalize a decree with minor technical changes.
- Potential sanctions for non-compliance remain unspecified, while authorities consider support measures like interest-free loans and cooperatives for employee equity acquisition.
- Congo already holds a 10% free, non-dilutable stake in mining projects and seeks to increase local participation amid rising commodity prices.
