The DRC government recently reiterated that the grace period for mining companies to implement the local employee shareholding requirement will expire on July 31, 2026. By that date, mining companies operating in the DRC must demonstrate that Congolese employees hold equity equivalent to 5% of the company’s share capital; companies that fail to comply by the deadline may face sanctions.
This requirement stems from the 2018 revised mining code. Under Article 71 bis of the Mining Code and Article 144 bis of the Mining Regulations, at least 10% of a mining company’s share capital shall be held by Congolese natural persons, with 5% allocated to national employees. The existing provisions do not explicitly require companies to grant shares to employees free of charge.
In January this year, DRC Minister of Mines Watum Louis instructed miners to submit compliance documents such as articles of association and shareholder registers by month-end July. On July 21, the Ministry of Mines held a meeting with mining companies and industry representatives, reaffirming the deadline and indicating that a supplementary decree would be signed after completing limited technical adjustments.
Currently, the financing methods for employees to acquire shares, the sources of shares, and the specific penalties remain to be further clarified. The government is considering providing interest-free loans or establishing employee cooperatives to help national employees obtain the relevant equity stakes.
This requirement will affect international miners such as Glencore, Ivanhoe Mines, CMOC, and Huayou Cobalt operating in the DRC. As the world’s largest cobalt producer and second-largest copper producer, the DRC has been advancing mining localization in recent years, aiming to increase the participation of its citizens in mining revenues and company operations.
From a policy perspective, this measure directly targets the equity structure and corporate governance of mining companies, rather than introducing new copper or cobalt production quotas, export bans, or adjustments to mineral product tax rates. Therefore, its direct impact on short-term mine production and international copper and cobalt supply may be relatively limited.
