By: Reuters

Democratic Republic of Congo will begin enforcing a long-delayed requirement for mining companies to offer local ownership stakes from July 31, the mines ministry said, despite concerns from some of the world's biggest copper and cobalt miners over its impact on the sector.

Reuters previously reported that miners in Congo, the world's top cobalt producer and second-largest copper producer, were seeking to delay enforcement of a 2018 law requiring companies to transfer 10% of their equity to Congolese nationals, including 5% for employees. No miner has yet complied, citing unresolved questions over implementation.

In January, Kinshasa ordered companies, including Glencore GLEN.L, Ivanhoe Mines IVN.TO and China's CMOC 603993.SS and Huayou Cobalt 603799.SS, to prove compliance by the end of July or face sanctions, according to a letter reviewed by Reuters.

The mines ministry reaffirmed the July 31 deadline in a post on X on Tuesday after talks with mining companies on a decree setting out how the rule will be implemented.

"Mining companies will have to comply with the legal provisions regarding Congolese participation in their share capital," the ministry said.

A mines ministry official confirmed to Reuters that the July 31 deadline was communicated to miners at the meeting with government officials on Tuesday.

Participants agreed that the decree should be signed after limited technical amendments, according to the post on X. An ad hoc committee was established to finalise the changes.

The post did not detail the amendments. It is not known what sanctions companies could face for non-compliance.

Congo's chamber of mines did not immediately respond to a request for comment.

As commodities prices surge, African countries are increasingly seeking a larger share of their mineral wealth.

Congolese authorities are considering interest-free loans and cooperatives to help employees acquire their mandated equity stakes.

The Central African nation already holds a free, non-dilutable 10% stake in mining projects under its 2018 code and can increase its ownership through paid acquisitions at licence renewals.

(Reporting by Fiston Mahamba; Additional reporting by Ange Adihe Kasongo; Writing by Maxwell Akalaare Adombila; Editing by Kirsten Donovan)