4 years after its entry into force, revised Mining Code at the heart of exchanges between FEC and stakeholders- DRC

October 19, 2022October 19, 2022 Janet

The current Mining Code of the Democratic Republic of Congo (DRC) was revised in 2018. Four years after this revision, there have been positive repercussions as many difficulties are noted by mining operators in the materialization of the Mining Code revised from 2018.

This is how the Federation of Companies of Congo (FEC), through the Chamber of Mines, starts, from Tuesday October 18 to Thursday October 20, 2022, the exercise of the evaluation of this Mining Code, with the support from all stakeholders in this sector. Objective: mark the way towards a probable revision in 2023.

Indeed, the Law gives the possibility to modify the Mining Code after a period of five years of implementation.

One year from this deadline, the Federation of Congo Businesses brought together all the stakeholders in the sector (Government, ministries, civil society and mining operators).

Participants should reflect on the problems undermining this sector, the significant progress made, the challenges to be met and possible changes to be made if necessary.

This forum, whose theme is “Mining activity in the DRC and its challenges: evaluation of the revised 2018 Mining Code”, is an opportunity for the Chamber of Mines of the FEC to strengthen its influence in decisions concerning this sector.

Significant advances from the 2018 Code

Louis Vatum, President of the Chamber of Mines of the FEC, reviewed the significant progress made since the implementation of the 2018 Mining Code.

Thus, the Congolese State, for example, has collected international payments, the special tax on excess costs, the levy of the State’s shareholding quota, the company’s share capital of which has increased from 5% to 10%, the exclusivity of subcontracting for companies in which the majority of the capital is held by Congolese, the required participation of at least 10% of natural persons of Congolese nationality when creating a mining company, the repatriation of 40% export.

Louis Vatum also evoked the other face of the less brilliant reality of the revised Mining Code.

Despite the existence of strategic quality minerals highly sought after by all the developed economies of the world, it has been observed that the DRC has not been able to attract new investors in geological exploration since the implementation of the 2018 Mining Code. .

For Albert Yuma, National President of the FEC, the State has benefited from the exceptional tax revenues generated by extremely high prices. Has this changed the daily life of the Congolese in the long term?, he wondered.

Albert Yuma also wonders if this situation will not ultimately have been only a parenthesis in the difficulties experienced on a daily basis by fellow citizens, which reappear as the courts find values more in line with those we have always had known over long periods of time.

For the head of the FEC, the forum must pin all cases of violation whatever the party in question and reach convergence on subjects with divergent interpretations.

According to Albert Yuma, it is a question of applying this Code correctly in order to derive all the advantages for each other.

Representing the impeded Minister of Mines, her Chief of Staff reminded the experts participating in the forum on the mining sector that they have the heavy task of reflecting on a field of activity on which rests the hopes of the Congolese people.