The Democratic Republic of Congo (DRC) has suspended nine subcontracting companies working at mines run by Eurasian Resources Group (ERG), adding to the complications faced by the cobalt and copper producers in the country.
The government initially announced the ban on March 14, claiming that the companies are not being operated by Congolese nationals as mandated by law.
Following a meeting with Kazakhstan-supported ERG, the regulator recently confirmed that the sanctions are still in place, according to Bloomberg.
The appointment of legitimate companies with Congolese shareholders is crucial, according to Miguel Kashal Katemb, the director general of the Regulatory Authority for Subcontracting in the Private Sector.
The allegations indicate a further deterioration in the relationship between ERG and the Central African nation.
The country plays a crucial role in the energy transition, as it supplies over three-quarters of the world's cobalt and is the second-largest copper producer. The government claims to be focused on maximising the domestic benefits derived from its valuable resources, which are extracted by multinational corporations.
Gecamines, a state-owned miner, is expressing its interest in acquiring certain assets from ERG.
The company believes that ERG has been lacking in terms of developing these assets at a satisfactory pace. Due to claims of environmental harm, the government has halted activity at one of the company's copper projects.
“ERG Africa’s policy is to comply with all applicable laws and regulations of the countries in which we operate, including local content legal and regulatory requirements,” a company spokesperson said. “We also require our business partners to comply with relevant applicable laws and regulatory frameworks and to adhere to the same standard.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
