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Cordaid NL
Extractives Democratic Republic of Congo

Evaluation of revised mining code DR Congo: “Put an end to the illegal retrocession of funds”

On Monday June 8, Cordaid launches the evaluation report of the implementation of the revised mining code provisions relating to community development in mining areas of the Democratic Republic of Congo (DRC).

Mining in the DRC. Image: Responsible Sourcing Network

The research assessed the management of 15% funds of the mining royalty directly paid to local governments (ETDs), the establishment of development funds, as well as the signing and implementation process of local development agreements aimed at supporting community development in mining areas.

Key findings

The key findings revealed that in many mining regions, the 15% funds of mining royalty are largely shared among ETDs and with some provincial services. These funds have mainly been allocated to operational and consumption expenditure of ETDs and provincial services instead of financing integrated and inclusive local development projects.

-> Read the full report here

-> Read the annexe of the report

Clear legal framework and policies should be adopted

“It is urgent that national authorities put an end to the illegal retrocession of ETDs funds to some provincial services and to all other similar practices which increase the fragmentation of these funds. DRC Parliament and Government should adopt clear legal framework and policies on the allocation of 15% funds of royalty and the sharing of these funds between the overlapping scenario of ETDs and for mining projects straddling two or more ETDs, taking into account the impacts suffered by affected communities”, says Fabien Mayani, Cordaid Advocacy Program Coordinator in the DRC.

Transparency

The central government should also ensure the respect by Provinces and ETDs of legal provisions and DRC commitments as part of transparency in the management of extractive sector revenues, funds resulting in mining royalty sharing, he adds.

Two years after the adoption of the revised mining code, the local bodies in charge of managing local development funds have not been set up yet due to the delay by the Congolese government in the adoption of additional implementing measures.

Only two companies have signed so far

The obligation to sign and execute the local development agreements has not so far been implemented by most of the mining operators. Out of more than 220 subject mining operators holding around 750 mining licenses, only two mining companies, Phelps Dodge Congo and Kalongwe Mining based in Lualaba Province, have already fulfilled and signed with the communities and got their local development agreements approved by the Governor.