Mining companies and the Congolese State called upon to apply the provisions of the mining code and regulations on the construction of head offices and the participation of Congolese in the social capital of mining companies
Kinshasa-DRC, November 07, 2022, the African Natural Resources Observatory (AFREWATCH), a non-governmental human rights organization specializing in natural resource issues, calls on mining companies based in the DRC and the Congolese State to respect and apply two legal obligations, namely (i) The holder of a mining exploitation right is required to construct a building to house his head office according to the norms of international standards in the capital of the province of exploitation within five years from date of the issue of the title (articles 197 al. 7 of the Mining Code and 393 bis of the Mining Regulations and (ii) the participation of natural persons of Congolese nationality for the constitution of share capital of mining companies (article 71 bis of the Mining Code)
While acknowledging the efforts made by mining companies based in the DRC to comply with the requirements of the mining legislation in force (mining code and regulations) on the basis of the many innovations on the mining royalty, the minimum allocation of 0.3% of the turnover as well as the signing of social responsibility specifications, AFREWATCH notes, however, that mining companies and the Congolese State flout the legal obligations imposed on holders of mining exploitation rights to construct a building to international standards to house the head office in the capital of the province of operation and to involve Congolese natural persons in the constitution of the share capital of their companies
These shortcomings were documented in an investigation report entitled: “Construction of head offices and Congolese participation in the share capital of mining companies: Two obligations flouted by mining companies and the Congolese State”.
According to the result of AFREWATCH’s investigations, in relation to the construction of the headquarters of mining companies which must correspond to 1% of the investment budget contained in the feasibility study, in the capital of the province of exploitation in accordance with with international standards, none of the 15 companies mentioned complied. Regarding the participation of Congolese in the constitution of the share capital of mining companies with at least 10%, AFREWATCH’s investigations show that no natural person of Congolese nationality has purchased, at least officially, shares in mining companies.
AFREWATCH has made recommendations to all the parties concerned, in particular the Government, state technical services, mining companies, EITI-DRC and civil society, so that concrete actions are taken to achieve the effective implementation of the provisions aforementioned.
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