Myb3 2017 18 Congo Kinshasa
Myb3 2017 18 Congo Kinshasa
Myb3 2017 18 Congo Kinshasa
Note: In this chapter, information for 2017 is followed by information for 2018.
The Democratic Republic of the Congo [Congo (Kinshasa)] The revised mining code encourages private sector development
played a globally significant role in the world’s production of of the mineral industry; the principal role of the Government is to
cobalt, copper, diamond, gold, tantalum, and tin. In 2017, the encourage and regulate the development of the industry. Mining
country’s share of the world’s mined cobalt production was rights are vested with the Government. The petroleum sector was
more than 60%; tantalum, 42%; diamond, 12%; copper, 5%; tin, governed by law No. 15–012 dated August 1, 2015.
3%; and gold, 1%. Congo (Kinshasa) accounted for about 49% In December 2017, the National Assembly approved a new
of the world’s cobalt reserves. Crude petroleum production also mining code that increased royalties on cobalt, copper, and gold
played a significant role in the domestic economy. The country to 3.5% and introduced a windfall profits tax. The new mining
was not a globally significant consumer of minerals or mineral code also increased the Government’s free-carried and non-
fuels in 2017 (République Démocratique du Congo Ministère dilutable share in mining projects to 10% from 5% and reduced
des Mines, 2018, p. 36; Shedd, 2018, 2019; Anderson, 2019; the guaranteed period for contract stability (the period during
Flanagan, 2019; George, 2019; Olson, 2019a, b; Padilla, 2019). which the Government was not allowed to renegotiate contracts)
to 5 years from 10 years. The Senate was expected to address the
Minerals in the National Economy new mining code in a session that was scheduled to start in early
January 2018 (Clowes, 2017).
The manufacturing sector accounted for an estimated 19.7%
In April 2013, the Government issued a decree that banned the
of the gross domestic product (GDP) in 2017, and the mining
export of cobalt and copper concentrates to promote domestic
and mineral processing sector, 17.4%. The value of output
downstream processing of cobalt and copper. Companies were
in the mining sector increased by 7.8% in 2017 compared
given a moratorium to comply with the ban; the moratorium
with a decrease of 0.7% in 2016 (Banque Centrale du Congo,
was scheduled to expire at the end of 2015. In December 2015,
2018, p. 28, 33).
the Government extended the moratorium until the end of 2016
In 2015 (the latest year for which data were available), large-
because power shortages limited downstream processing of
scale mines employed at least 75,572 Congolese nationals.
concentrates. As of early 2017, it was unclear when the ban would
Copper and cobalt mining accounted for the majority of reported
be implemented (Roskill Information Services Ltd., 2017).
formal mining employment. The top five copper producers in
Congo (Kinshasa) is a signatory to the Kimberley Process,
Congo (Kinshasa) employed 31,850 Congolese nationals in
which is a certification system that was put in place to
2015. The large-scale gold mines employed 6,502 Congolese
reduce the trade in conflict diamond; it became effective
nationals, and the large-scale diamond mines, 3,259 Congolese
on January 1, 2003. In 2017, the Diamond Development
nationals (Moore Stephens LLP, 2017, p. 141–143).
Initiative (DDI) trained artisanal miners in compliance with
About 450,000 artisanal miners were estimated to be
the Kimberley Process. DDI was in a program to formalize
employed in diamond mining in Congo (Kinshasa) in 2016.
artisanal diamond mining through the formation of cooperatives
An additional 100,000 artisanal miners were estimated to be
(Diamond Development Initiative, 2017).
employed in cobalt mining. Between 2013 and 2015, a survey of
In July 2010, the U.S. Congress passed the Dodd-Frank
1,615 mine sites was conducted in the former Katanga Province
Wall Street Reform and Consumer Protection Act (Dodd-
(which was divided into Haut-Katanga, Haut-Lomami, Lualaba,
Frank Act) which contains provisions concerning the use
and Tanganyika Provinces in 2015), Maniema, Nord-Kivu,
of minerals to finance military operations in eastern Congo
and Sud-Kivu Provinces, and Ituri Province (formerly the
(Kinshasa). The U.S. Securities and Exchange Commission
Ituri Interim Administration of Orientale Province) by the
(SEC) issued regulations in final form in accordance with the
International Peace Information Service (IPIS). Gold mining
Dodd-Frank Act in August 2012. In 2017, the SEC suspended
was reported to employ about 193,000 miners; tin mining, about
enforcement of the provisions of the Dodd-Frank Act requiring
32,000; niobium and tantalum mining, about 15,500; diamond,
audits and due diligence for conflict minerals in companies’
about 4,100; tourmaline, about 3,900; and tungsten, about 1,800.
supply chains (Woody, 2019).
Niobium, tantalum, tin, and tungsten mining employed a total
In March 2011, the Government of Katanga Province
of about 42,800 miners; some mines produced at least two types
and the International Tin Research Institute (ITRI) started
of minerals (Frankel, 2016; James, 2016; Weyns and others,
the ITRI Tin Supply Chain Initiative (iTSCI), which is a
2016, p. 15–16).
traceability mechanism for domestically produced tantalum,
Government Policies and Programs tin, and tungsten to meet end users’ requirements under the
Dodd-Frank Act and Organisation for Economic Co-operation
The mining sector was governed by law No. 007/2012 of and Development due diligence guidelines. In December
July 11, 2002, which replaced law No. 81–013 of April 2, 1981. 2017, 286 mine sites were covered by iTSCI in the former