Republic of Congo
Legislation
- Mining Code 2005
- EIS Decree 2009
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Served | Subscribe |
| Application Critiera | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
The Republic of Congo’s Mining Code shadows best practice but remains largely in the dark. The profound weakness is that Mining Conventions must be negotiated in order to advance exploration and exploitation activities, thus there is very little certainty of the terms of investment offered by the Code itself. That being said, few would wish to proceed under the terms of the law alone without appropriate mitigation measures – so a Convention is also necessary to close the gaps and areas of substantial discretion. It is consistently surprising that legal frameworks which require a level of sophistication in order to be administered and implemented (whilst avoiding corruption) continue to be adopted in countries with underdeveloped and under-experienced mining sectors.
Contents
Legislation
- Mining Code 2005
- EIS Decree 2009
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
The Republic of Congo’s natural resource industry is largely based on oil and gas. The country is amongst the largest oil producers in Sub-Saharan Africa, and oil accounts for a vast portion (around 90%) of exports. The country’s economy is therefore heavily impacted by changes in crude oil pricing. The Republic of Congo’s mining sector remains underdeveloped, though efforts have been taken to diversify the economy with mining a targeted industry. This may well prove to be a successful strategy, given the country’s resource wealth is considerable – with iron ore, magnesium, diamonds, potash, phosphate, copper, lead, zinc and gold present. Artisanal and small-scale mining activities dominate the gold and diamond mining sector, while international mining companies have traditionally focused on base and precious metals. Infrastructure and electricity supply are key challenges in the country, as is the issue of corruption. Mining companies with activities in the Republic of Congo have also faced challenges with the government over licence revocation – with licences subsequently awarded to other companies. Australian company Sundance initiated an arbitration claim for more than $8 billion USD over the revocation of its iron-ore mining title in 2021 -which was subsequently awarded to a Chinese investor. Two UK companies – World Natural Resources and Midus Holdings have similar arbitration cases pending.
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