DRC Orders Western and Asian Mining Titans to Surrender Local Equity or Face Sanctions

The Democratic Republic of Congo ordered Western and Asian mining companies to surrender at least 10% of their local equity to Congolese nationals by the end of 2023, officials said. The directive aims to enforce the 2018 Mining Code’s requirements for greater national ownership and includes a 5% non-dilutable stake reserved for company employees, as part of a broader policy to increase state and citizen participation in the mining sector.

Mines Minister Louis Watum Kabamba signed the circular, which activates immediate enforcement of the 2018 Mining Code’s equity participation provisions. Mining firms must submit proof of compliance, including updated corporate documents such as articles of association and shareholder registers, by July 31, 2026, according to government sources.

The directive, issued by the Democratic Republic of Congo’s Ministry of Mines in a ministerial circular dated Jan. 30, 2026, requires mining companies to ensure that at least 5% of their share capital is held by Congolese employees as a non-dilutable stake, officials said.

The 10% local equity requirement, which includes the 5% reserved for workers, is separate from a mandatory 10% non-dilutable state interest stipulated by the 2018 Mining Code and its revised regulations. The Code also mandates an additional 5% state equity stake upon each renewal of mining or tailings exploitation rights. These rules form part of a broader policy aimed at increasing national mineral sovereignty and boosting fiscal revenues from mining activities, officials explained.

The enforcement drive targets major Western and Asian mining companies operating large copper and cobalt projects in the DRC. Among those named in government notices are Glencore, Ivanhoe Mines, China Molybdenum (CMOC), and Huayou Cobalt, sources confirmed. These firms received written instructions earlier this year to provide evidence of compliance with the 10% local equity rule, including the 5% worker allocation, by the end of July. Industry reports indicate that, as of the announcement, no major mining company had yet complied due to long-standing regulatory uncertainty.

Mining companies have requested delays in implementing the 5% worker equity mandate, citing a lack of clarity on valuation methods, share transfer mechanisms, and eligibility criteria for employees. Firms have raised concerns about how to allocate shares among a large workforce and manage governance and voting rights tied to the new stakes, according to industry representatives. Labor unions, however, are pressing for immediate enforcement, emphasizing the importance of local participation in mining ownership and wealth distribution, union officials said.

Following a government-industry meeting on July 22, the Ministry of Mines announced that an implementation decree would be signed after minor technical revisions, according to ministry briefings. An ad hoc committee has been established to finalize amendments and operational details, focusing on procedural steps for share transfers, documentation standards, and alignment with OHADA corporate law applicable in the DRC. The ministry has emphasized that the decree aims to remove ambiguity that has hindered compliance since the 2018 Mining Code revision.

The 2018 Mining Code raised royalties on copper and gold from 2% to 3.5%, and on cobalt—classified as a strategic substance—from 2% to up to 10%, according to fiscal data. It also requires exploitation operations to be at least 40% equity-funded, tightening rules against thin capitalization and excessive debt financing. License holders must allocate 0.3% of annual turnover to community development projects benefiting mine-affected areas and contribute to socio-economic and industrial development initiatives, officials said.

The law incorporates Extractive Industries Transparency Initiative (EITI) principles, mandating monthly publication of production, sales, and payment data to national and local authorities. These fiscal and transparency measures, combined with equity mandates for the state, local citizens, and workers, reflect an integrated policy to increase state revenue, local ownership, and oversight over foreign mining operations, according to government statements.

The Ministry of Mines has warned that non-compliance with the equity participation requirements will result in regulatory sanctions, though specific penalties have not been publicly detailed. In a social media update cited by Reuters, the ministry reiterated that “mining companies will have to comply with the legal provisions regarding Congolese participation in their share capital,” underscoring the mandatory nature of the equity transfer.