Sources say that Congo miners want to delay the 5% worker equity rule until July deadline.

According to three sources and a document, miners in the Democratic Republic of Congo want to delay a government directive that requires them to give a 5% stake to Congolese workers. Unions, however, are pressing for immediate implementation before a deadline of July 31.

A union leader claimed that no company had yet followed the directive, despite authorities' efforts to enforce local participation. Congo is the second largest copper and cobalt producer in the world.

As commodity prices increase, African governments are seeking to gain a greater share of the mineral wealth. The Congo's "rule" reinforces an existing legal provision.

MINERS REQUEST MORATORIUM

The circular dated January 30, which was seen this month, required miners to assign the 5% share to Congolese workers, and provide proof of compliance.

A mining executive and union leaders have said that the Congo's Chamber of Mines has not resolved key questions, such as whether existing shareholders must transfer equity, and if this requirement is retroactive to operations already in place.

Sources requested anonymity because they weren't authorized to speak with media.

The executive stated that on June 11, major miners such as Eurasian Resources Group, Ivanhoe CMOC and China's CMOC gathered in the chamber to coordinate a reaction. Glencore, Ivanhoe and CMOC declined to comment.

The chamber has requested in writing a moratorium for consultations with interested parties, but no alternative timetable has been suggested, according to the executive.

The executive stated that "this concern is shared by many major companies" and added that a number of them were still waiting for clarity on the final framework.

The Congo's Mines Ministry and Chamber of Mines have not responded to comments immediately.

MINES MINISTRY TO MEET ?UNIONS

One union leader has said that the Congo's Mines Ministry will be meeting unions to "explain" more about?the directive on Friday.

The unions claim that mining companies are slow to act.

Another union leader stated that miners previously allocated?about 3% of their funds to worker-linked plans, but?that the oversight of these funds was lacking transparency.

The second source stated that the government wanted them to increase the rate to 5%. She added that it could help support the development of mining regions. "On the union's side, we demand immediate implementation." (Reporting done by Ange Adihe Kaongo and Maxwell Akalaare Adombila. Mark Potter is the editor.

(source: Reuters)