A MAJOR CHANGE IN THE MINING SECTOR IN THE DEMOCRATIC REPUBLIC OF CONGO: THE 22ND OF FEBRUARY 2023 MARKED THE ENTRY INTO FORCE OF A DECREE REGULATING TRANSACTIONS ON THE MINING ASSETS OF DRC STATE-OWNED COMPANIES.
The Prime Ministerial Decree no. 23/08 establishing the terms and conditions for the sale of mining assets of the state-owned companies came into force on 22 February 2023 (the Decree).
The Decree has introduced a procedure applicable to transactions by Congolese state-owned companies in relation to their mining assets.
The main objective of this Decree is to ensure that disposals of mining assets are carried out in a transparent and consistent manner, protecting the interests of the State and the state-owned companies involved. It also aims at preventing the sale of the assets at a price lower than their real value.
1. State-owned companies
A state-owned company (entreprise publique) is a company in the State’s portfolio in which the State or any public legal person holds all or an absolute majority of the shares. The relevant state-owned companies include the following:
- Congolaise de l’Exploitation Minière (COMINIERE) S.A.,
- Société de Développement Industriel et Minier au Congo (SODIMCO) S.A.,
- Générales des Carrières et des Mines (GECAMINES) S.A.,
- Entreprise Minière de Kisenge Manganèse (EMK-MN) S.A.,
- Société Minière de Bakwanga (MIBA) S.A.,
- Société Aurifère du Kivu et du Maniema (SAKIMA) S.A,
- Société Minière de Kilo-Moto (SOKIMO) S.A.
2. Relevant transactions
The transactions covered by the Decree include:
- The total or partial transfer of mining assets to one or more natural and/or private legal persons in return for financial consideration;
- Entering into a public-private partnership that allows the state-owned company to divest its assets without transferring ownership, such as the amodiation [1];
- The creation of a joint venture with one or more natural and/or private legal persons, involving the transfer of mining rights as a contribution to the capital of the new entity.
3. Procedure
The procedure for concluding a transaction involving a state-owned company’s mining assets involves several key stages: Read more
