Embassy of the Democratic Republic of the Congo

MINING

The sector attracted several subsidiaries of large multinationals to operate in the DRC. The success story indicates the presence in DRC of companies such as: TENKE FUNGURUME MINING (FREE PORT McROAN, KOLWEZI COPPER COMPANY (KINROSS-EGMF) KIBALI GOLD MINING Mutanda, ASHANTI GOLDFIELD KILO, Twangiza MINING.

Potentials in mineral wealth by province

Mining representing 1,100 different minerals.

All provinces have particular minerals.

Vision

Government of the DRC has to improve more governance and transparency in the mining sector management and the traceability of public revenues;

For this purpose, it will (1) evaluate, revise and popularize the Act No. 007/2002 of 11 July 2002 of the Mining Code, (2) set up a national geological department and(3) evaluated the titles already granted in order to improve the mining cadastral file.

Provinces Minerals
Bandundu Diamond, Oil, Kaolin, Clay
Bas-Congo Bauxite, pyroschite, limestone, phosphate, vanadium, diamond, gold, copper, lead, sinc, manganese, marble, black and pink granite, rock-salt, iron, gypsum clay, talc, silica, kaolin, baryta, asphaltic schist
Equateur Iron, copper and associated minerals, gold, diamond, limestone, kaolin, clay, granite, niobium, ochre
Province Orientale Gold, Diamond, iron, silver, clay, copper, kaolin, niobium, ochre, asphaltic schist, talc
Kasai Oriental Diamond, iron, silver, nickel, tin, clay, chromium, cobalt, copper, gold, kaolin, talc
Kasai Occidental Diamond, gold, managanese, chromium, nickel, clay, cobalt, platinum, copper, iron, kaolin, lead
Katanga Copper and associated metals, cobalt, manganese, limestone, uranium, coal, niobium, gold, platinum, lithium, talk, tantalum, wolfram, zinc, clay, bismuth, cadmium, germanium, cassiterite, iron, granite, gypsum, kaolin, monazite, saltworks, beryl (emerald), sapphire
Nord-Kivu Gold, niobium, tantalite, cassiterite, beryl, tungsten, manganite, clay, bastnaesite, coal, granite, monazite, niobium, platinum, wolfram, tantalum
Sud-Kivu Gold, niobium, tantalite, cassiterite, sapphire, amblyogonite, argent, argile, bastnaesite, beryl, bismuth, diamante, diatomite, monazite, wolfram, zinc, tantale
Maniema Etain, diamant, cassiterite, or amblyogonite, lithium, clay, copper, iron, kaolin, manganese, columbium, lead, talc, tantalum, wolfram
Kinshasa Clay, silica, kaolin, arkosic sandstone.
  The characteristics of Congolese minerals are as follows:

– The Banalia deposits have a 65% higher iron content (low content in Si02).

– The ores of (magnetite, hematite, mastitis, goethite) in Katanga have a content varying between 54 and 66% iron and 3 and 21% silica without many impurities.

– Chromium and Nickel have an average content of 1.45% and 3.8% Cr.

– The lead vanadate deposit has an average ore content of 25-30% lead and 5-6% vanadium, etc.

– Bauxite is located at Sumbi and Sanzala with a content of 48% Al.

– The phosphate resources of Fundu Nzobe in the district of Bas-Congo estimated at 70 million gross tons have an average content of 27% P2O5. At Kanzi, the same resources are estimated at 25 million tons at an average content of 17% P2O5. At Vangu, they are estimated at 20 million tons at 22% P2O5.

Number Mineral Substances Quantity ( tons)
1 Copper 75 000 000
2 Lithium 31 000 000
3 Niobium 30 000 000
4 Manganese 7 000 000
5 Zinc 7 000 000
6 Cobalt 4 500 000
7 Iron (over 60%) 1 000 000
8 Cassiterite 450 000
9 Gold 600
10 Diamond 206 000 000 (Carats)
There are two possibilities to invest in the mining sector, namely:

(1) The partnership with portfolio companies; or

(2) Others already having mining concessions.

Request mining titles to the Mining Registry in accordance with the following conditions and procedure:

Conditions for the grant of the Operating License

The granting of the Operating License is subject to the following conditions by the applicant:

– Prove the existence of an economically exploitable deposit by presenting a feasibility study along with a technical guidance plan of development work, of construction and operation of the mine;

– Prove the existence of financial resources necessary to carry out one’s project as per a financing plan of development work, of construction, and operation of the mine and the site rehabilitation plan at its closing.

– The plan specifies each type of financing, sources of funding and the justifications of their probable availability;

– Transfer 5% of shares in the capital of the applicant company to the State.

These shares are unencumbered and not dilutable.

Eligibility for mining rights

Are eligible for quarry mineral rights:

Any natural person of Congolese nationality and any legal entity subject to Congolese law headquartered in the National Territory and whose corporate purpose is mining.

Any natural person of foreign nationality and any legal entity subject to foreign law;

All science-based organization;

Natural and legal persons under foreign law must act through an agent in mines and quarries.

File Admissibility

An application form duly completed and signed to leave at the Mining Registry (Website: www.cami.cd);

The applicant’s identity documents or statutes for legal entities;

A certificate of financial capacity issued by CAMI or provide evidence of financial capacity;

Geographic data of the requested perimeter;

Proof of payment of the application filing fee;

All other documents required according to the type of right requested.

The processing of the file for the granting of mining rights is as follows:

Cadastral examination – Technical examination – Environmental examination – Inter-ministerial Order.

The registry examination will focus on:

A verification of eligibility;

A verification of financial capacity;

An indicative report of the perimeter on mining fallout map;

A verification of possible encroachments of perimeters requested on the existing rights of third parties;

Compliance with the principle of “first come, first served”.

Mode for granting mining rights

The law provides for two procedures for granting mining rights, namely:

(1) Generally upon request;

(2) Exceptionally on a tender (open or restricted).

Kinds or LicenseFees
 $3.06/square for the first 2 years
PR ( Research License)$31.69/square for the two other years
 $52.10/square for the 2 years of the first renewal
 $149.22/square for the 2 years of the second renewal
PE (Operating License)$511.09/square and per year
PER (Rejection Operating License)$817.74/square and per year
PEPM (Operating License of small Mine)$235.10/ square and per year)
ARPC ( Research License of Quarry products)$5.11/ square and per year
AECP ( Operating License of Permanent quarries)$204.43/square and per year
Legal framework

The current Congolese Mining Code2 was enacted by the Congolese Congress on 11 July 2002 (Mining Code). The implementing measures of the Mining Code are set forth in the Mining Regulations of 26 March 20033 (Mining Regulations).

New Mining Code will aim, in particular, to:

  1. Enhance the government’s control over the mining sector;
  2. Further regulate elements related to the social and environmental responsibility of mining corporations; and
  3. Incorporate the latest changes in the Congolese administrative context, for instance the introduction of the VAT in the Congolese tax regime.
  4. Address financial and accounting manipulations (such as high interest rates applied by the operator’s affiliate companies acting as lenders) used by mining companies to funnel company profits to their foreign shareholders’ groups.

In this respect, the current Mining Code provides for a 10-year stability guarantee. This stability guarantee provides that rights attached to valid mining rights at the promulgation date of the Act modifying the Mining Code will remain unchanged and vested for a 10-year period.

This 10-year period will start either from:

  1. The entry into force of the Act modifying the Mining Code, for mining rights which are valid at that time; or
  2. The date a mining right is granted provided it has been granted under a valid research permit that existed at the time of the entry into force of the Act modifying the Mining Code.
  3. From a political point of view, the redefinition of the DRC’s provinces is also likely to have some impact on operators. Since July 2015, after the government gave effect to the increase in the number of provinces, from 11 to 26, mandated in the 2006 constitution, the main copper-producing region – Katanga – has been split into four separate provinces. The 400-kilometre (249-mile) journey from Kolwezi to the Zambian border now crosses two provinces – Haut-Katanga and Lualaba – instead of just one.

At the regional level, in July 2012 the DRC joined the Organization for the Harmonization of Business Law in Africa (OHADA). OHADA law is of particular interest to mining companies, as it primarily covers commercial, corporate, loan-guarantee, accounting and arbitration law. OHADA law entered into force in the DRC on 12 September 2012. In addition, a one-stop shop for business start-ups (Guichet Unique) was recently instituted and shows encouraging development.

The Mining Cadastre receives applications for mining rights, grants mining rights and keeps records of mining rights, among other functions. Moreover, the DRC has created a national transparency initiative committee with respect to the management of extractive industries in the DRC. Any regulation is issued by the Ministry of Mines, which supervises mining activities at national level.

 

Kinds or licenseCosts
PR (Research license)3.06$/square for the first 2 years
31.69 USD/ square for the two other years
52.10 USD/ square for the 2 years of the first renewal
149.22 USD/ square for the 2 years of the second renewal
PE (Operating license)511.09 USD/ square and per year
PER (Rejection operating license)817.74 USD/ square and per year
PEPM (Operating license of Small Mine)235.10 USD/ square and per year
ARPC (Research license of quarry products)5.11/ square and per year
AECP (Operating license of permanent quarries)204.43/ square and per year

 

The mining sector in the Democratic Republic of Congo is regulated by Law No. 007/2002 of 11 July 2002 on the Mining Code and Decree No. 038/2003 of 26 March 2003 on Mining Regulations.

The new Code performs a classification of mineral deposits in mines and quarries. It’s precise that the President of the Republic may declassify or reclassify a mining substance into quarry product and vice versa.

The Mining Code pursues the following objectives:

  • Create a win-win framework for all;
  • Develop and encourage infrastructure for all;
  • Develop human capital of DRC;
  • Develop the processing capacity locally;
  • Develop the DRC as a destination for foreign capital and technology;
  • Encourage the immediate development of the country and not speculation.

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