Congo eyes cooperatives and credit scheme to fund mine workers' equity stakes
2026-06-24 11:45:24 [Print]
The Democratic Republic of Congo is weighing a plan to enable mining employees to acquire mandatory ownership stakes in their employing companies through worker cooperatives and corporate-backed credit, according to a draft decree reviewed by Reuters on Tuesday.
Authorities in the world's largest cobalt producer and second-biggest copper miner are drafting regulations to enforce a 2018 law requiring mining companies to reserve 10% of their equity for Congolese nationals, with half of that-5%-earmarked for employees.
Although the rule was introduced seven years ago, no mining firm has yet complied. In January, the government gave operators-mostly multinational giants such as Glencore, Ivanhoe, and China's CMOC-a July deadline to demonstrate compliance or face potential penalties.
Under the proposed decree from Congo's mines ministry, companies would be obligated to offer shares to their workers on an interest-free credit basis.
Employees' stakes would be held collectively through cooperatives, while the remaining 5% of equity would be set aside for other Congolese citizens, who could hold shares either through Congolese-owned enterprises or state social security institutions.
Under the credit arrangement, workers would repay their loans via deductions of up to 80% from their annual dividends until the debt is fully cleared, the draft decree shows.
The decree also stipulates that companies may not dilute the 10% equity reserved for Congolese nationals, regardless of any future capital increases.
Authorities in the world's largest cobalt producer and second-biggest copper miner are drafting regulations to enforce a 2018 law requiring mining companies to reserve 10% of their equity for Congolese nationals, with half of that-5%-earmarked for employees.
Although the rule was introduced seven years ago, no mining firm has yet complied. In January, the government gave operators-mostly multinational giants such as Glencore, Ivanhoe, and China's CMOC-a July deadline to demonstrate compliance or face potential penalties.
Under the proposed decree from Congo's mines ministry, companies would be obligated to offer shares to their workers on an interest-free credit basis.
Employees' stakes would be held collectively through cooperatives, while the remaining 5% of equity would be set aside for other Congolese citizens, who could hold shares either through Congolese-owned enterprises or state social security institutions.
Under the credit arrangement, workers would repay their loans via deductions of up to 80% from their annual dividends until the debt is fully cleared, the draft decree shows.
The decree also stipulates that companies may not dilute the 10% equity reserved for Congolese nationals, regardless of any future capital increases.
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