The DRC Mining Code: What Foreign Investors Need to Know (2026)

The Democratic Republic of Congo's Mining Code is the most strategically important mining legislation in the world today — it governs the supply chains for cobalt, copper, and lithium that power the global energy transition. Substantially revised in 2018, the DRC Mining Code introduced significantly higher royalties, a "strategic minerals" classification with enhanced fiscal terms, increased state participation requirements, and a reduced stabilisation period. For foreign investors evaluating DRC mining opportunities, understanding the Code — and the unwritten realities of how it is applied — is essential.

This article provides a practical guide to the DRC Mining Code for foreign investors: the legal framework, the fiscal terms, the licensing process, the special provisions for strategic minerals, and the practical realities of operating under the Code.

Legal Framework and Jurisdiction

The DRC Mining Code is codified in Law No. 18/001 of March 9, 2018 (substantially revising Law No. 007/2002 of July 11, 2002) and supplemented by Decree No. 038/2003 (mining regulations). The Code governs all aspects of mining and quarrying activities in the DRC, including exploration, exploitation, processing, marketing, and transportation of minerals.

Key Regulatory Bodies

1. Ministry of Mines: Policy formulation, mining convention approval
2. Cadastre Minier (CAMI): Mines cadastre, licence administration, permit management
3. DGRAD (Direction Générale des Recettes Administratives): Revenue collection
4. SAEMAPE: Artisanal and small-scale mining authority
5. OCC (Office Congolais de Contrôle): Product certification and quality control for exports
6. Centre d'Expertise, d'Évaluation et de Certification (CEEC): Diamond, gold, and other precious mineral certification

Constitutional Principle

Under Article 9 of the DRC Constitution, all mineral resources are owned by the state. Private parties acquire only the right to explore and exploit minerals through licences and conventions granted by the state.

Mining Rights and Licences

The DRC Mining Code provides three types of mining rights:

1. Reconnaissance Rights (Droits de Reconnaissance)

1. Granted for initial geological reconnaissance over a defined area
2. Maximum 12 months, renewable once
3. Non-exclusive (state can grant other reconnaissance rights over the same area)
4. Limited rights but can be converted to exploration permits

2. Exploration Permits (Permis de Recherche)

1. Granted for systematic exploration over a defined area
2. Initial 5-year term, renewable up to 10 years total
3. Exclusive within the granted area
4. Required: technical capacity, financial capacity, work programme, environmental management plan
5. Surface fee: rising scale per square kilometre

3. Mining Permits (Permis d'Exploitation)

1. Granted for commercial extraction over a defined area
2. 30-year initial term, renewable for periods of 15 years
3. Required: feasibility study, environmental and social impact assessment, financing plan
4. Holders must enter into a Mining Convention with the state for projects above defined thresholds

Mining Conventions

For projects above certain investment thresholds, a Mining Convention between the project company and the DRC government supplements the mining permit. The Convention codifies project-specific commitments including:

1. Investment programme and timeline
2. Production targets
3. Royalty and tax rates (within statutory ranges)
4. State equity participation
5. Local content commitments
6. Community development obligations
7. Closure and rehabilitation provisions
8. Dispute resolution

Mining Conventions are negotiated and approved by the Council of Ministers. They are the governing document for project-specific terms and can include provisions different from (but consistent with) the Code.

Royalties: The Headline Numbers

The 2018 Code substantially increased royalty rates from the 2002 framework:

The most significant change was the classification of cobalt, germanium, lithium, and columbite-tantalite as "strategic minerals" with a 10% royalty rate (up from 2%). This was — and remains — controversial, as it dramatically increased fiscal exposure for cobalt-producing operations in the DRC.

Royalty Calculation

Royalties are calculated on gross commercial value (turnover) at the point of sale, before any expenses or deductions. There is no allowance for processing costs, transportation, or marketing — the royalty applies to the full value of the metal produced.

Strategic Minerals: The 2018 Innovation

The Strategic Minerals classification was added by Article 7 of the 2018 Code. The classification gives the President of the Republic discretionary power (by decree) to designate any mineral as "strategic" based on industrial importance, market conditions, or strategic considerations. Currently designated strategic minerals: cobalt, germanium, columbite-tantalite, and lithium.

Strategic mineral classification carries:

1. 10% royalty rate (vs 3.5% for non-strategic minerals)
2. Subject to additional export controls
3. Special export procedures including OCC certification

State Participation

Under Article 71 of the 2018 Code, the DRC government holds a 10% free-carried interest in all new mining permits — increased from 5% under the 2002 Code. This 10% interest:

1. Is non-dilutable (cannot be reduced through capital raises)
2. Does not require capital contribution from the state
3. Entitles the state to dividends in proportion to the interest
4. Is held through Gécamines, SOKIMO, or another designated state mining entity

In practice, Gécamines (Générale des Carrières et des Mines) is the most common state participant, holding free-carried interests in major DRC copper-cobalt operations including Kamoa-Kakula (20%), KCC/Katanga (25%), TFM (20%), Sicomines (32%), Deziwa (49%), and others. SOKIMO holds the state interest in Kibali (10%).

Tax Framework

DRC mining companies are subject to multiple tax obligations:

Super-Profits Tax (Article 251)

A particularly novel feature of the 2018 Code is a super-profits tax of 50% on extraordinary profits — defined as profits exceeding 25% of the project's expected operating profit (as set out in the project's feasibility study). This provision is designed to capture additional value during commodity price spikes.

Tax Stabilisation

The 2002 Code provided a 10-year tax stabilisation clause. The 2018 Code reduced this to 5 years — a significant reduction in fiscal certainty for project investors.

Local Content and Community Development

Articles 285a and following of the 2018 Code introduced detailed local content requirements:

1. Local procurement: Mining companies must give preference to Congolese suppliers and subcontractors for goods and services
2. Local employment: Specific percentages of skilled and unskilled positions reserved for Congolese nationals
3. Skills transfer: Mandatory training programmes for Congolese employees
4. Community development levy: 0.3% of revenue allocated to community development funds in the project's area of operations
5. Sub-contractor priority: A specific list of services (transport, catering, security, etc.) is reserved for "100% Congolese-owned" sub-contractors

The local content requirements are administered through a Ministry of Mines mechanism with periodic reporting and audit obligations.

Environmental and Social Provisions

The 2018 Code substantially strengthened environmental and social compliance requirements:

1. Environmental and Social Impact Assessment (ESIA): Required for all mining permits, with specific format and content requirements
2. Environmental Management Plan (PGEPP): Annual reporting on environmental compliance
3. Mine closure plan: Required from project inception with progressive funding through escrow arrangements
4. Mining Operations Convention with affected communities: Direct agreements with communities living in the project area, addressing land use, employment, compensation, and benefits
5. Tailings storage facility regulation: Strengthened oversight following international best practices

Strategic Mineral Export Controls

Strategic minerals (cobalt, lithium, germanium, columbite-tantalite) are subject to additional export controls beyond the standard regime:

1. Mandatory OCC certification before export
2. Export licence required for each shipment, with prescribed documentation
3. Mandatory in-country value addition is a stated policy goal but not yet uniformly required
4. Export quotas can be imposed (as during the February–June 2025 cobalt export suspension and subsequent quota system from October 2025)

The cobalt export quota system introduced in 2025 — designed to manage market oversupply and stabilise prices — represents a significant new policy lever that DRC authorities can deploy. Quotas allocated to companies are subject to multiple criteria including production capacity, payment of taxes, ESG compliance, and local content compliance.

Practical Realities: What the Code Doesn't Tell You

The DRC Mining Code is the formal legal framework, but operating in the DRC requires understanding several practical realities not codified in law:

Bureaucratic Complexity

Permit administration involves multiple ministries, agencies, and provincial authorities. Even straightforward administrative actions can take months. Direct relationships with relevant officials are essential.

Provincial vs Central Authority

Lualaba and Haut-Katanga Provinces — where most mining occurs — have their own provincial governments and revenue authorities. Provincial-level taxes and fees supplement central government obligations and require separate management.

Political Cycles

Mining policy direction shifts with political cycles. The 2018 Code revisions occurred under President Kabila; President Tshisekedi (since 2019) has applied the Code differently, with stronger emphasis on local content and the audit of historical contracts (notably Sicomines).

Community Relations

Direct community engagement is essential, often through formalised Community Development Funds and Mining Operations Conventions. Project disruption due to community grievances is a real and material operational risk.

Security

Eastern DRC (North Kivu, South Kivu, Ituri) faces ongoing armed conflict — primarily M23, FDLR, and various militia groups. Mining operations in these provinces face direct security risks. Most large-scale industrial mining occurs in Lualaba and Haut-Katanga, which are significantly more secure.

Currency and Capital Controls

The DRC's currency (Congolese franc) is managed through capital controls. Mining companies typically generate revenue in USD (export sales) and have to navigate complex foreign exchange regulations for repatriation.

Recent Developments (2024–2026)

Several recent developments are reshaping how the Code is applied:

Sicomines audit (March 2026): The DRC government launched a comprehensive forensic audit of Sicomines (China Railway + Sinohydro + Gécamines) covering 2008–2024 operations. Mayer Brown was appointed as audit counsel. The audit is examining both contractual compliance and the renegotiated infrastructure-for-resources framework.

Cobalt export quotas (October 2025): Following the February–June 2025 suspension, the DRC introduced an ongoing cobalt export quota system to manage market supply. Quotas are allocated by the Ministry of Mines to producing companies based on multiple criteria.

US-DRC minerals-for-security framework (2025–2026): Bilateral framework between the DRC and US designed to give American companies preferential access to DRC critical minerals in exchange for security assistance. Operating outside the formal Code but shaping commercial deal structuring.

Gécamines-Mercuria-DFC JV (2026): A landmark transaction routing 500,000 tonnes per year of copper cathodes and significant cobalt volumes to Western buyers via a Gécamines-Mercuria joint venture with US DFC equity participation. This represents the first major Western-aligned marketing channel for DRC strategic minerals.

Manono Lithium / AVZ dispute: Ongoing arbitration proceedings (ICC, ICSID) over the revocation of AVZ Minerals' Manono permit and re-allocation to Zijin Mining. The case is closely watched for precedent on contract sanctity in the DRC.

Frequently Asked Questions

What are the royalty rates in the DRC Mining Code? Standard royalty rates: copper 3.5%, gold 3.5%, iron ore 1%, construction materials 1%. Strategic minerals (cobalt, lithium, germanium, columbite-tantalite) face a 10% royalty rate. All rates are calculated on gross commercial value at the point of sale.

What is the DRC's "strategic mineral" classification? The 2018 Mining Code introduced a "strategic mineral" classification carrying a 10% royalty rate (vs 3.5% for non-strategic minerals). Cobalt, lithium, germanium, and columbite-tantalite are currently designated as strategic minerals by presidential decree. The classification can be changed by the President.

How much equity does the DRC government take in mining projects? Under the 2018 Code, the DRC government holds a 10% free-carried interest in all new mining projects (raised from 5% under the 2002 Code). Free-carried means the state receives equity without contributing capital. The interest is held through Gécamines, SOKIMO, or another state mining entity.

What is the DRC stabilisation period for mining projects? The 2018 Code provides a 5-year fiscal stabilisation period — reduced from 10 years under the 2002 Code. After the stabilisation period, fiscal terms can be modified by the government.

Are foreign companies allowed to mine in the DRC? Yes. The DRC allows 100% foreign ownership of mining operations, subject to the 10% government free-carried interest and Mining Convention terms. There are no nationality restrictions on mining companies operating in the DRC.

What is Gécamines? Gécamines (Générale des Carrières et des Mines) is the DRC's primary state mining company, holding free-carried equity stakes in most major DRC copper-cobalt mining operations. Under President Tshisekedi, Gécamines has pursued operational restoration, including the 2026 joint venture with Mercuria and US DFC for copper-cobalt marketing.

Sources: DRC Mining Code 2018 (Law No. 18/001); DRC Mining Regulations Decree No. 038/2003; Norton Rose Fulbright DRC Mining Guide 2024; PwC DRC Mining Tax Guide 2024; Africa Mining Network DRC company directory 2026; Mayer Brown DRC mining law publications.

Last updated: May 2026.

This article provides general information only and does not constitute legal advice. For specific DRC mining matters, consult qualified Congolese mining law counsel.