DRC Minister of Mines Launches Operational Phase of 0.3% Turnover Allocation Management
During the 131st meeting of the Council of Ministers, Minister of Mines Antoinette N’Samba announced that specialized organizations responsible for managing the allocation of 0.3% of turnover are now operational, with 46 mining companies already engaged in this initiative.
These organizations, having received allocations for community needs outlined in their local development plans, are focusing on projects aimed at constructing basic community infrastructure, providing access to clean water and electricity, improving hygiene and sanitation, and fostering job creation and entrepreneurship.
Funds collected through these allocations have already facilitated the commencement of numerous projects across Haut-Uélé, Haut-Katanga, and Lualaba provinces, with additional projects set to begin soon.
Minister of Social Affairs, Humanitarian Actions, and National Solidarity Modeste Mutinga highlighted the government’s objective of meeting fundamental needs in education, health, nutrition, and infrastructure during this initial phase of the Mining Code’s implementation.
The subsequent phase, starting in January, will focus on socio-economic recovery, including improvements in housing, agriculture, and the establishment of small industries to enhance living standards and contribute to economic diversification.
Key Details About the 0.3% Endowment:
The endowment, mandated by article 258 bis of the Mining Code, requires extractive companies to allocate a minimum of 0.3% of turnover to benefit local communities affected by mining activities.
Management of this allocation is overseen by a structure with legal authority, in accordance with procedures outlined in an approved manual jointly managed by the Ministers of Mines and Social Affairs.
The manual provides guidelines on the allocation process, project selection, compliance with legal requirements, and financial procedures. It emphasizes principles such as good governance, transparency, accountability, and citizen participation.
Specialized organizations manage the funds, ensuring representation from mining companies and impacted local communities. Financial procedures mandate that funds be held in a designated bank account, with withdrawals requiring co-signature from representatives of multiple stakeholders.
Allocation breakdown: 90% for community development projects and 10% for organizational and oversight expenses.
The 0.3% endowment serves as a vital component of mining companies’ social responsibility efforts, complementing other measures outlined in the 2018 Mining Code to promote sustainable development within local communities.
