Congo enforces local ownership rule for copper and cobalt miners

Congo enforces local ownership rule for copper and cobalt miners

The Democratic Republic of Congo has announced strict enforcement of a long-standing mining ownership rule.
The policy requires Congolese employees to hold 5% of mining company share capital.

Mines Minister Louis Watum confirmed the directive in a January 30 letter to all mining operators.
The ministry published the letter on X and verified its authenticity through an official source.
Companies must prove compliance by July 31, 2026, or face regulatory consequences.

This decision targets copper, cobalt, and other industrial metals operations across the country.
Congo supplies about 70% of global cobalt and ranks second in global copper production.
As a result, the rule carries global implications for battery metals and energy transition supply chains.

Impact on major copper and cobalt producers in Congo

The rule affects many of the world’s largest copper and cobalt producers.
Major operators include Glencore, CMOC Group, Ivanhoe Mines, ERG, and Zijin Mining Group.
Barrick Mining also operates a major gold mine within Congo’s borders.

Congo hosts significant reserves of lithium, tantalum, tin, and zinc.
Therefore, the ownership rule could influence investment decisions across multiple critical minerals.
However, companies must now adjust capital structures to meet employee ownership requirements.

The mining code already mandates state participation in mining projects.
Mining projects must grant the government a 10% free carried interest.
Permit renewals trigger an additional 5% ownership transfer to the state.

Legal background and geopolitical context

Congo based the directive on its 2018 mining code and regulations.
The law already required employee ownership, but authorities rarely enforced the rule.
Now, regulators plan consistent enforcement across all metals projects.

Separately, the code allows private Congolese citizens to purchase another 5% stake.
The minister’s letter did not directly address this provision.
Meanwhile, Congo continues talks with the Trump administration on mining investment.

These discussions could attract more US companies into Congo’s mining sector.
Historically, Chinese enterprises have dominated large-scale mining investments.
Therefore, ownership enforcement may rebalance foreign and domestic participation.

SuperMetalPrice Commentary:

Congo enforces local ownership rule for copper and cobalt miners at a strategic moment.
The policy strengthens local participation while preserving state control.
However, miners must now reassess equity structures and long-term project economics.
Over time, clearer enforcement could improve regulatory certainty and investor discipline.
SuperMetalPrice expects short-term adjustments but stable long-term supply fundamentals.