Lithium Carbonate Futures: LC2401 Main Contract Falls by 1.05%

The Democratic Republic of Congo (DRC) has reaffirmed that it will begin enforcing the local equity participation requirements under its 2018 Mining Code from 31 July, despite concerns raised by several international mining companies. Under the legislation, mining companies are required to transfer 10% of their equity to Congolese nationals, including 5% allocated to employees. As the implementing regulations have remained unclear for several years, no mining company has yet complied with the requirement. In January, the DRC government instructed mining companies, including Glencore, Ivanhoe Mines, CMOC and Huayou Cobalt, to demonstrate compliance by the end of July or face sanctions, although the specific penalties for non-compliance have not yet been disclosed. Following a meeting with mining companies on 22 July, the DRC Ministry of Mines reiterated the 31 July compliance deadline and announced that the implementation decree would be signed after a limited number of technical amendments. An ad hoc committee has also been established to finalise the revisions. To help employees acquire their required equity stakes, the government is considering measures such as interest-free loans and support through cooperatives. Amid rising commodity prices, resource-rich African countries, including the DRC, have increasingly sought to secure a larger share of the value generated from their mineral resources. Under the 2018 Mining Code, the DRC government is already entitled to a 10% free, non-dilutable interest in mining projects and may further increase its ownership through paid acquisitions upon the renewal of mining licences.