DRC Miners Seek Delay to 5% Employee Equity Rule as Unions Push for Immediate Enforcement
DRC Mining Sector Divided Over 5% Congolese Employee Equity Requirement as Companies Request Delay and Unions Demand Enforcement
Mining companies operating in the Democratic Republic of Congo are seeking a delay to a government directive requiring them to allocate a 5% equity stake to Congolese employees, while trade unions are calling for immediate enforcement ahead of a July 31 deadline, according to a document and three industry sources.
No company has yet complied with the directive, a union leader said, despite growing government pressure to strengthen local participation in a sector dominated by foreign investors.
The DRC is the world’s leading producer of cobalt and the second-largest producer of copper.
Across Africa, governments are increasingly pushing for a larger share of mineral wealth amid rising commodity prices.
In Congo, the measure reinforces an existing legal provision aimed at expanding local ownership in the mining industry.
Miners seek moratorium
A circular dated January 30, seen by Reuters, instructs mining companies to allocate a 5% stake to Congolese workers and submit proof of compliance.
However, the country’s Chamber of Mines says several key issues remain unresolved, including whether existing shareholders must transfer equity and whether the requirement applies retroactively to long-established mining operations, according to a mining executive and two union leaders who spoke anonymously as they were not authorized to comment publicly.
Major mining firms, including Eurasian Resources Group, Ivanhoe Mines, Glencore, and China’s CMOC Group, met with the Chamber of Mines on June 11 to coordinate a joint response, the executive said. Glencore and Ivanhoe declined to comment, while CMOC and ERG did not immediately respond to requests for comment.
The Chamber of Mines has formally requested a moratorium to allow further consultations with stakeholders, though no alternative implementation timeline has been proposed, the executive added.
“This concern is widely shared by major companies,” the executive said, noting that many operators are still awaiting clarity on the final legal framework.
Congo’s Ministry of Mines and the Chamber of Mines did not immediately respond to requests for comment.
Government and unions prepare talks
The Ministry of Mines is expected to meet trade unions on Friday to provide further clarification on the directive, according to a union representative.
Unions, however, accuse mining companies of delaying implementation.
A second union leader said mining firms had previously allocated around 3% of equity to worker-linked schemes, but oversight of those funds lacked transparency.
“That is why the government wants them to increase it to 5%,” the source said, adding that the initiative could help boost development in mining regions.
“On the union side, we are demanding immediate implementation,” the union leader added.
