(3 minutes read)
In a significant development, the Government of the Democratic Republic of Congo (DRC) suspended more than 20 mining licenses recently, triggering criticism that it would adversely affect investor confidence.
In a significant development, the Government of the Democratic Republic of Congo (DRC) suspended more than 20 mining licenses recently, triggering criticism that it would adversely affect investor confidence. The decree canceling the mining rights of 20 mining companies was issued recently. That includes cement plants and critical green mineral facilities producing cobalt and copper near the city of Lubumbashi.
Read Also:
https://trendsnafrica.com/kenyans-allowed-to-enter-drc-without-visas/
While the reasons for the drastic decision are still not known, it is speculated that several companies had not signed documents relating to social and environmental commitments to local communities. However, a section of the investors feel that it is a ploy of the government to acquire the assets for reselling to secure millions of dollars before the country’s national election in December. It appears that some of the companies of which the rights have been canceled seem to have filled the “Cahiers des charges” document in August, in line with the mining code.
Read Also:
https://trendsnafrica.com/east-african-bloc-agrees-to-extend-time-for-deployment-of-troops-in-drc/
There are miners who believe that such things do happen when the elections approach and the government in power will use this opportunity to raise funds for fighting the costly elections. However, they point out that such moves cause a substantial negative impact on investor confidence as the case has shown the government’s willingness to pervert the law in order to acquire key assets. The mining companies point out that the move would cause widespread unemployment as more than 600 people would be immediately out of work while the mines are shuttered. The mining companies have decided to go in appeal against the decision; but avers that it has created unnecessary break in their operations.
