Congo’s planned mining law reform could dent investor confidence
Democratic Republic of Congo's main mining industry body has warned that proposed changes to mining laws aimed at tightening state control could dent investor confidence in the world's top cobalt producer, a document seen by Reuters on Monday shows.
Congo, the world’s second-largest copper supplier, is also a major source of gold, tantalum and germanium, and hosts some of the mining industry’s biggest companies, including China’s CMOC, Huayou Cobalt and Zijin, Switzerland-based Glencore and Canada’s Barrick Mining.
Like many other resource-rich African countries, Congo has in recent years stepped up efforts to get a bigger share of revenue from its vast mineral wealth.
Key revisions to its mining code would expand state control over strategic and reserved minerals, allow the creation of strategic stockpiles, and bolster regulatory and anti-fraud oversight through specialised mining sector agencies.
SPEED OF REFORMS CONCERNING
A Bill submitted by lawmaker Serge Chembo N’Konde and sent to the government for comment in June — and seen by Reuters on Monday — would amend more than 40 articles of the 2018 code and add provisions on strategic minerals, local content, community development and enforcement.
The rules were last revised eight years ago and the bill says that parts of the 2018 code have become outdated and there is need for greater state oversight.
The Chamber of Mines has called an emergency forum for July 15 to 17 to forge a common industry position and assess whether another mining code revision was warranted, according to the internal document seen by Reuters.
“The speed with which the revision process appears to be unfolding raises fears that mining operators may not be sufficiently involved,” the chamber said, warning that further changes could fuel regulatory uncertainty and institutional tensions.
Congo’s mines ministry did not immediately respond to a request for comment.
Miners say the sector’s problems stem less from flaws in the 2018 code than from its implementation, citing overlapping mandates, unauthorised interventions and conflicting interpretations that undermine legal certainty.
The chamber circulated the document to government officials, miners, investors and civil society inviting them to the three-day forum.
The proposed changes would also broaden powers to suspend or withdraw permits and increase penalties for infringements, including fines of up to $1-million and prison terms of up to 20 years.