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DR Congo’s government will consider changes sought by mining companies to a proposed overhaul of the country’s mining laws, a government spokesman told Semafor, as executives warned that repeated shifts in the rules could deter investment.
“If there are concerns or points raised by our friends in the mining sector, we will listen to them and integrate them,” Information Minister Patrick Muyaya told Semafor. The bill would give the government broader powers to limit production and stockpile strategic minerals as DR Congo steps up efforts to capture more value from its mineral wealth.
Serge N’konde Chembo, the lawmaker who introduced the bill, told Semafor stronger state oversight was needed to track mineral exports and account for the revenue they generate. “We need to know how much we export and how much the country earns,” he said. His proposal would amend about 40 articles of the 2018 mining code. Muyaya said reviewing the law after eight years was “a normal exercise,” adding that some issues may have evolved for both mining companies and the legal framework.
The proposal, which was entered into review on June 13, prompted the Chamber of Mines, DR Congo’s main mining industry body, to convene an emergency meeting in Kinshasa last week over concerns the overhaul could deepen regulatory uncertainty. Benjamin Katabuka, head of US critical-minerals explorer KoBold Metals in Congo, said established rules should not be changed “in the middle of the game,” warning that doing so would deter other investors. Cyrille Mutombo, head of Canadian miner Barrick-operated Kibali, one of Africa’s largest gold mines, said repeated changes through annual finance laws were already disrupting long-term planning: “It changes everything we do.”
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Across Africa, governments are tightening mining laws, taxes and export controls to capture more revenue from natural resources without driving away foreign investment. DR Congo, which produces roughly 70% of the world’s cobalt, has repeatedly expanded state control over its mining sector. In May, the government approved adding lithium and several other metals to its list of strategic minerals, raising their royalty rate to 10% from 3.5%. The higher rate applies to Zijin Mining’s new Manono operation, which began exporting lithium concentrate in June, and would apply to any future production by KoBold, which is exploring nearby.
“The concerns raised by mining companies in 2018 were not sufficiently taken into account,” Cyrille Mutombo, head of Kibali Goldmines said at the industry forum.The 2018 overhaul followed a six-year battle between the government and some of the world’s largest miners over changes that removed 10-year tax and customs protections for existing investments, raised royalties and introduced a 50% windfall-profits tax.
At a cabinet meeting earlier this month, President Félix Tshisekedi said a competitive mining sector required “a stable legal environment, predictable administrative decisions and permanent dialogue” between the state and operators.
Ruben’s view
Kinshasa is trying to take a larger share of its mineral wealth while using access to that wealth to secure US support for peace and investment. Those two goals are now producing different rules. The Mining code applies tougher terms across the industry, while qualifying US-backed projects can receive stronger protections under the US-DR Congo strategic partnership inked last December. The pact gives US companies preferential access to selected strategic assets, while qualifying projects can receive a renewable 10-year fiscal stabilization clause and other tax and regulatory benefits.
That gap will shape the coming debate. The proposed bill seen by Semafor keeps in place the rules mining companies fought unsuccessfully in 2018. Those companies can now point to the US agreement as proof that Kinshasa accepts the need for greater legal and fiscal certainty when the political return is high enough. Reopening the Code gives them a chance to press that case again.
Room for Disagreement
Reforming DR Congo’s mining code is justified, but the process must be transparent and inclusive to avoid creating more uncertainty, according to Jean Pierre Okenda, a Congolese lawyer and head of the extractive-governance group La Sentinelle. He said a comprehensive review could resolve contradictions between the mining code and the country’s minerals agreement with the US, including provisions on fiscal stability, but questioned whether American investors should receive preferential treatment. “A reform is legitimate. The question is how it is done,” Okenda said, warning that a rushed overhaul could leave lawmakers revisiting the mining code again within months.
Notable
- DR Congo’s planned mining law reform could dent investor confidence, an industry body warned the government.