Regulatory Update

DRC Mining Code 2018: Three Years On — What’s Working, What’s Not, and What’s Coming

Veritas IntelligenceMar 31, 202611 min read
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The 2018 Mining Code was the most significant reform to the DRC's mining regulatory framework in 16 years. It increased royalties, expanded state participation, and imposed aggressive local content requirements. Three years into implementation, the results are mixed.

What's Working

Government revenue from the mining sector has increased substantially — from approximately USD 1.5 billion in 2017 to over USD 3 billion in 2025. The strategic substance designation for cobalt (triggering a 10% royalty) has been the single largest revenue driver, capitalising on the global EV battery supply chain demand. The DRC produces over 70% of the world's cobalt.

What's Not

Local content targets remain largely unmet. The Code requires 10% procurement from Congolese-owned enterprises, rising to 40% within 10 years. Major mining companies report achieving 15-25% local procurement — above the initial target but well below the trajectory needed for 40%. The constraint is supplier capacity, not willingness.

The stability clause reduction from 10 to 5 years has deterred some new investment. Companies with existing projects are protected under the old regime, but new entrants face greater regulatory uncertainty.

What's Coming

The government has signalled further amendments targeting: increased lithium royalties (lithium was declared a strategic mineral in 2022 with a 5% royalty, but pressure is building for parity with cobalt at 10%); mandatory in-country beneficiation for lithium and copper concentrates; and enhanced environmental rehabilitation bond requirements.

For investors: The DRC mining sector remains one of Africa's highest-return opportunities, but regulatory risk has increased since 2018. Build regulatory change monitoring into your investment model — the Veritas corpus tracks 32 DRC instruments including the Mining Code, environmental framework, local content regulations, and conflict minerals due diligence requirements.
Need this mapped to your obligations? Veritas turns regulatory analysis into cited answers, obligation registers, and board-ready compliance workflows.