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.
Previously, the 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 (GLEN.L), opens new tab, Ivanhoe Mines (IVN.TO), opens new tab and China’s CMOC (603993.SS), opens new tab and Huayou Cobalt (603799.SS), opens new tab, to prove compliance by the end of July or face sanctions. Reports said.
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.
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“Mining companies will have to comply with the legal provisions regarding Congolese participation in their share capital,” the ministry said.
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.
