Consider industrial mining investment outside of Greater Katanga! (Grandstand)-DRC
The DRC is a geological scandal. There is gold, cobalt, copper, lithium, coltan, etc. These natural advantages are reflected in particular by the country’s positive growth rate, driven largely by the mining sector. However, on closer inspection, this potential seems to me to be under-exploited. Indeed, when I analyze the State of mining titles dated July 2021, it appears that out of the 388 active mining titles belonging to private entities, 245, or 63% are located in the provinces of Upper Katanga and Lualaba. The western provinces where there are however traces of minerals such as diamonds in Djolu or Idiofa respectively in the provinces of Tshuapa and Kwilu where there is currently no mining exploitation title.
On this subject, the current Mining Code is of great help because it provides in particular, with regard to the tax system, in its article 220, that ” the Prime Minister can, by decree deliberated in the Council of Ministers, grant a certain number incentive measures for provinces suffering from an infrastructure deficit to boost their economic development based on mining resources. “.
Indeed, the mining investor in provinces such as Tshuapa, Kwilu or Mai-Ndombe, with regard to their infrastructure deficits (road, energy, labor) cannot have the same tax burdens as a mining investor in Haut-Katanga or in Lualaba. Unfortunately, we have noticed since the entry into force of the above-mentioned article 220 (2018), that no incentive measure has been taken in favor of its provinces, which constitutes a huge competitive disadvantage in terms of attractiveness.
Having apprehended this inaction by the public authorities, I began in 2018 the drafting of a bill which I call ” the law on economic mining zones ” which provides, in the spirit of article 220, not only incentives for mining investment in the provinces outside Katanga but also the very strict procedure for gaining access to them. As soon as this is ready and the Congolese public authorities express the desire to expand mining investments outside of “Greater Katanga”, I intend to speak with the Minister of Mines to make my contribution.
It is time to consider the development of the mining industry outside of “Grand Katanga”.
