DRC Subcontracting Regulator Cancels Kibali Contracts, Orders Legal Tender Process
DRC’s ARSP Voids Kibali Gold Mine Contracts with KMS, Boart Longyear and TAI Services Over Subcontracting Violations
The Regulatory Authority for Subcontracting in the Private Sector (ARSP) has ordered the immediate cancellation of contracts deemed irregular between Kibali Gold Mine and three contractors KMS, Boart Longyear and TAI Services citing their ineligibility to conduct subcontracting activities under current regulations.
The decision follows a compliance audit carried out in November 2025. According to the regulator, the companies failed to meet statutory requirements governing private-sector subcontracting, particularly in relation to accreditation, administrative compliance and eligibility criteria designed to prioritize Congolese-owned enterprises.
Transition Period to Protect Production
While enforcing the cancellations, ARSP has called on Kibali Gold Mine to enter into discussions to establish a transition period. The objective is to maintain operational continuity at one of the country’s largest gold producers while new tenders are launched in full compliance with legal procedures.
The regulator emphasized that subcontracting in the mining sector is subject to strict legal standards and is not exempt from oversight, regardless of the scale of the operator involved.
Policy Alignment and Economic Objectives
The measure aligns with the policy direction set by President Félix Tshisekedi, which seeks to expand access to subcontracting opportunities for Congolese small and medium-sized enterprises (SMEs).
The broader objective is to strengthen local participation in the mining value chain and support the emergence of a national middle class.
By targeting contracts linked to a major mining operation, ARSP signals a stricter enforcement posture while seeking to avoid disruption to national gold output and public revenues.
Industry observers view the move as an attempt to balance regulatory rigor with economic stability tightening compliance requirements while allowing an orderly transition to safeguard production and investor confidence.
