Public Management

DRC: Government suspends some of ERG’s subcontractors for allegedly defaulting local content regulation

DRC: Government suspends some of ERG’s subcontractors for allegedly defaulting local content regulation
Friday, 05 April 2024 19:11

In the Democratic Republic of Congo (DRC), a law passed in 2017 requires mining companies to employ local subcontracting firms whose majority stake is detained by Congolese nationals. One of the country's main producers of copper and cobalt, Eurasian Resources Group (ERG), is accused of not complying with this measure.

The DRC government has suspended nine subcontractors working in the copper and cobalt mines owned by Eurasian Resources Group (ERG). According to the regulator of subcontracting in the private sector, as reported by Bloomberg on April 4th, the subcontractors were suspended in mid-March due to ERG’s failure to comply with some regulations in place.

Miguel Kashal Katemb, MD of the Regulatory Authority, said ERG must partner with companies predominantly controlled by Congolese nationals, by the prevailing regulations. The Luxembourg-based company asserts that it already does so, but Kashal believes that Congolese individuals at the helm of ERG's subcontractors are shareholders only "on paper; they are not involved in operations, they do not manage the companies."

It should be noted that the production of the Metalkol mine, one of the world's main cobalt mines, and that of the Frontier mine, which delivered over 100,000 tonnes of copper last year, should not be affected by the suspension. ERG has been granted a grace period to find new subcontractors.

The dispute between the regulator and ERG is one of the many between the firm and the Congolese government. In 2023, the Ministry of Mines halted operations at ERG’s Boss Mining copper-cobalt mine, accusing the company of environmental pollution. Also, for some months now, the State company for mines, GECAMINES, has been trying, unsuccessfully so far, to take over some of ERG’s assets.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Ivory Coast–based NSIA Group created its own reinsurance company, Manzi Re, after receiving regulatory approval from the CRCA. NSIA appointed former...
Governments plan to raise CFA3,908.5 billion on the BEAC public securities market The total is down from CFA5,272.8 billion mobilized between...
Somalia is shifting from crisis management to policy-led reconstruction under IMF-backed reforms. Fiscal discipline and institutional rebuilding...
DR Congo launches FOREC, activating long-dormant economic regulation fund Fund to monitor markets, stabilise prices, protect household purchasing...
Most Read
01

Africa’s AI adoption is accelerating, but its ability to scale depends primarily on foundational i...

Africa’s Artificial Intelligence Moment : Infrastructure, Governance and the Path to Scale
02

African billionaires increased their combined net worth by $21.9 billion in 2025. Nigerian b...

Africa’s Billionaires Post Strong Gains as Global Wealth Hits Record
03

Development Partners International sold its 20.17% stake in Atlantic Business International for mo...

DPI Exits Atlantic Business International in $200 Million-Plus Deal
04

Flutterwave acquired Nigerian open banking startup Mono in an all-share deal valued between $...

Flutterwave Adds Open Banking With Mono Acquisition
05

Africa’s energy & mining exports benefit from US tariff exemptions, cushioning trade as most other...

Africa’s Energy Boom in 2026 Puts AfCFTA at the Heart of Its Trade Response to US Tariffs
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.