Congo continues to push for local ownership rules for miners, despite industry concerns
The Democratic Republic of Congo will begin enforcing the long-delayed requirement that mining companies offer local ownership stakes on July 31. This is despite concerns raised by some of the largest copper and cobalt producers in the world about the impact of this law. The Congolese miners, who are the top cobalt and copper producers in the world, had been trying to delay implementation of a law passed last year that required companies to transfer 10% of equity to Congolese citizens, including 5% to employees. No miner has complied yet, citing unresolved implementation questions.
Kinshasa, in a January letter, ordered Glencore, Ivanhoe Mines, China's CMOC, and Huayou Cobalt to demonstrate compliance?by July 31 or face sanctions.
In a Tuesday post on X, the Mines Ministry reaffirmed that the?July 31, deadline will still apply after discussions with mining companies about a decree defining how the rule would be implemented.
The ministry stated that "mining companies must comply with legal provisions regarding Congolese involvement in their share capital".
Officials from the Mines Ministry confirmed that miners were informed of the deadline on July 31 at a meeting held with government officials Tuesday.
According to the post at X, participants agreed that the decree would be signed only after minor technical changes. A special committee was formed to finalise the changes.
The post didn't detail the changes. The sanctions that companies may face for non-compliance are unknown.
The Congo Chamber of Mines did not respond to a comment request immediately. African countries are seeking to increase their share of the mineral wealth as commodity prices rise. The Congolese authorities have considered interest-free loans as well as cooperatives in order to assist?employees with acquiring their mandated shares.
Under its 2018 code, the 'Central African nation' already owns a 10% non-dilutable free stake in mining projects. It can increase this ownership by paying for acquisitions during licence renewals.
(source: Reuters)
