AFREWATCH Criticizes Delayed Payments to Local Communities by Mining Companies in DRC
The NGO African Resources Watch (AFREWATCH) has raised concerns over the delayed payments by several mining companies in the Democratic Republic of Congo (DRC) toward the mandated 0.3% of their turnover, intended to benefit local communities most affected by mining activities.
Jean-Pierre Lwamba, responsible for local community rights at AFREWATCH, highlighted in an interview with ACTUALITÉ.CD that the delays are primarily due to the late establishment of specialized organizations and the development of procedural manuals. Despite the necessary frameworks being established since 2021 and 2022, mining companies have yet to clear the arrears of the 0.3% endowment, hindering community development projects.
“In Haut-Katanga and Lualaba, some specialized organizations have received partial funding from companies and have initiated projects.
However, many organizations are still awaiting the full allocation, with some having received only a fraction of the funds since 2018,” Lwamba explained. He added that these delays have caused some organizations to suspend project implementation, and others are not yet operational.
AFREWATCH is urging the Ministries of Mines and Social Affairs, which oversee the management bodies of the 0.3% allocation, to regularly monitor mining companies to ensure they fulfill their obligations by paying into the fund.
“We appeal to the Ministry of Mines and the Ministry of Social Affairs to enforce checks on mining companies, ensuring they meet their responsibilities by contributing to the Endowment Fund.
This will enable specialized organizations to carry out projects for the benefit of the most affected communities,” Lwamba continued.
Additionally, AFREWATCH calls for an increase in the representation of local communities within specialized organizations, as well as representatives from various state services.
The 0.3% endowment is a mechanism outlined in Article 258 bis of the Mining Code, requiring extractive companies to allocate a minimum of 0.3% of their turnover to benefit local communities impacted by mining.
The funds, derived from the gross revenues of mineral sales, are managed by legally constituted organizations under a procedural manual approved by the relevant ministries.
This allocation is intended to finance community development projects within the mining company’s area of operation. The management of these funds adheres to principles of good governance, transparency, accountability, citizen participation, and equity.
The funds are distributed with 90% earmarked for community development projects and 10% for the functioning of the specialized organization and control bodies.
The management process includes strict financial procedures, such as co-signature requirements for withdrawals and detailed financial rules established in the Internal Regulations of each specialized organization.
