DRC Orders ERG Subsidiaries to End Contracts with 128 Ineligible Subcontractors
DRC ARSP Orders ERG Subsidiaries to Terminate Contracts with 128 Ineligible Subcontractors
The Democratic Republic of Congo’s Authority for Regulation of Subcontracting in the Private Sector (ARSP) has ordered three subsidiaries of Eurasian Resources Group (ERG) to terminate contracts with 128 subcontractors deemed ineligible under the country’s subcontracting regulations.
The order, contained in Decision No. 026/ARSP/DG/2026 signed on September 25, targets Frontier SA, Boss Mining SAS and Metalkol SA, which operate in Haut-Katanga and Lualaba provinces.
The decision followed compliance inspections at the three companies, with observation reports received on July 30 and 31, 2026.
The inspections identified 77 ineligible subcontractors linked to Frontier, 28 at Boss Mining and 23 at Metalkol, covering contracts awarded between 2023 and 2025.
The ARSP said the companies concerned did not meet the eligibility requirements under Article 6 of Law No. 17/001 of February 8, 2017, as amended by Law No. 26/017 of June 30, 2026.
The legislation generally reserves subcontracting activities for companies with Congolese capital and registered headquarters in the DRC, subject to specific exemptions.
Under the decision, Frontier, Boss Mining and Metalkol were ordered to stop awarding, renewing or extending contracts to the companies listed by the ARSP.
They must also terminate ongoing contracts with the affected subcontractors and remove them from their subcontractor registers until they regularise their status.
The three ERG subsidiaries have been given 30 days to submit a mandatory corrective action plan detailing the timetable for ending the contracts, evidence that the affected companies have been removed from their registers and measures to increase access to contracts for eligible subcontractors.
The ARSP said it would conduct a follow-up inspection to verify implementation of the corrective measures.
Failure to comply could result in sanctions provided for under the law, including those outlined in Article 30 quinquies.
The decision took effect immediately upon signature.
