Former Portfolio Minister Proposes Revision of DRC Mining Code
Former Portfolio Minister Adèle Kayinda Mahina has proposed a significant revision of the mining code, suggesting a change in the legal form of mining companies operating in the Democratic Republic of Congo (DRC).
“I would like to propose a modification of the mining code to require that mining companies be constituted in the form of public limited companies or simplified joint-stock companies (SAS), instead of limited liability companies (SARL), which only have one manager. This is similar to what is done in the banking sector,” stated Adèle Kayinda.
The proposal aims to enhance the transparency and governance of mining companies in the DRC. Public limited companies and simplified joint-stock companies offer more guarantees in terms of shareholder responsibility, transparency of operations, and control of activities.
Additionally, these structures facilitate a better distribution of powers within the company, which can help limit abuses and fraudulent practices.
“Another modification should be made within the framework of production sharing, as is the case in the hydrocarbons sector. As the owner of the subsoil or the deposit, the state should not wait for profits to be realized to benefit, especially since these are unsustainable and exhaustible resources,” argued Adèle Kayinda.
This proposal raises crucial issues for the DRC’s mining sector, which is one of the pillars of the country’s economy. By encouraging the transformation of mining companies into public limited companies or SAS, the former minister hopes to contribute to better management of the country’s natural resources and a more equitable distribution of wealth generated by mining.
It will now be up to Jean-Lucien Busa, the new Minister of State in charge of the Portfolio, to consider this proposal and decide on the measures to implement it.
This transition to more transparent and accountable legal structures could mark an important turning point in the history of mining in the DRC.
