The DRC Mining Code sets royalty rates by mineral class, distributes collected revenue across four recipient categories, and imposes a separate set of community obligations on operators that are distinct from royalties but flow from the same legal framework. Investors and operators need to understand both the royalty calculation and the distribution mechanism before they can model project economics or community relations accurately.
How royalties are calculated
Royalties under the 2018 Mining Code apply to the ex-works value of minerals: the price at the mine gate, adjusted downward for transport, insurance, and refining costs from the mine to a reference delivery point. This ex-works basis means the royalty is applied before most of the value-chain costs that operators incur in moving product to market.
The calculation formula is set out in Articles 240–242 of the Code. Royalties are paid monthly to the Direction Générale des Recettes Administratives, Judiciaires, Domaniales et de Participation (DGRAD). DGRAD is one of the government entities that must declare royalty receipts for the EITI reconciliation.
Declarations of ex-works value are made by the operator. DGRAD has the right to challenge declared values if they appear inconsistent with published commodity prices or peer operator declarations. Transfer pricing disputes — where an operator sells to an affiliated trading entity at a below-market price to reduce the royalty base — have been a source of government-operator friction across several large operations.
The rate by mineral type
Royalty rates as of April 2026:
Copper: 3.5 percent of ex-works value Cobalt (strategic): 10 percent Gold: 3.5 percent Coltan (strategic): 10 percent Cassiterite: 3.5 percent Wolframite: 3.5 percent Zinc: 3.5 percent Germanium (strategic): 10 percent Diamonds: 6 percent
The strategic-mineral designation that triggers the 10 percent rate was introduced in the 2018 revision and applied to cobalt, coltan, germanium, and others listed in a ministerial decree accompanying the Code. The designation list can be amended by ministerial regulation, giving the government a faster mechanism for rate changes than a full Code amendment.
Strategic minerals
For cobalt, the practical effect of the 10 percent strategic rate on large-volume operations is substantial. A mine producing 20,000 tonnes of cobalt per year at a cobalt price of $25,000 per tonne generates $500 million in cobalt revenue. At a 10 percent royalty on ex-works value (assuming minimal deductions), the royalty obligation is approximately $50 million annually from cobalt alone. That compares to $10 million under the pre-2018 rate of 2 percent.
How revenue is distributed
Article 242 of the 2018 Mining Code specifies the distribution of collected royalty revenue across four recipients:
Central government (Direction Générale des Finances): 60 percent Affected province: 25 percent Entité Territoriale Décentralisée (ETD — the local authority covering the mine area): 10 percent Fonds de Promotion de l'Industrie Minière (FPIM — the mining industry promotion fund): 5 percent
The 25 percent provincial share and 10 percent ETD share are designed to ensure that mineral revenue reaches the subnational governments most directly affected by mining activity. In practice, the actual transfer of provincial and ETD shares from central accounts has been inconsistent, with delays in disbursement documented by the EITI DRC reconciliation process. The 2021 EITI report — the most recent published — noted arrears in provincial and ETD transfers from several royalty periods.
Province and ETD shares
The ETD — typically the territory (territoire) or commune in which the mine sits — is the entity responsible for managing local infrastructure, schools, and health facilities. The 10 percent ETD share is the primary formal fiscal mechanism through which mining revenue is supposed to reach the communities immediately adjacent to operating mines. Its actual delivery depends on the central-to-local transfer architecture, which has been a persistent governance challenge.
The Mining Code requires operators to fund two additional community-facing instruments that are separate from and additive to royalty obligations:
Plan de Développement Communautaire (PDC): an annual community development programme funded by the operator at a specified percentage of after-tax profit. The PDC must address education, health, water, and economic development priorities identified through consultation with affected communities.
Cahier des Charges: a formal contract between the operator, the ETD, and the provincial government specifying infrastructure, employment, and service commitments to be delivered by the operator over the life of the mine. The Cahier des Charges is project-specific and negotiated at the time of permit issuance.
Both instruments are enforceable in principle but monitoring and enforcement have been inconsistent. Larger and listed operators (Ivanhoe, Glencore, Barrick) publish annual sustainability or responsible mining reports that describe PDC activities and Cahier des Charges progress. Privately held operators provide less systematic disclosure.
