Blitz Bureau
NEW DELHI: Democratic Republic of Congo will begin enforcing a longdelayed 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 per cent of their equity to Congolese nationals, including 5 per cent 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.
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.
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 per cent stake in mining projects under its 2018 code and can increase its ownership through paid acquisitions at licence renewals.
