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Agreement empowers DRC subcontractors

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The Tenke Fungurume mine in the Democratic Republic of the Congo (DRC) produces some of the highest grade cobalt in the world. Image credit: Paul-Alain Hunt from Unsplash

Agreement empowers DRC subcontractors

The DRC signed an agreement to ensure more Congolese participation at the Tenke Fungurume cobalt mine.  

The Congolese Regulatory Authority for Subcontracting in the Private Sector (ARSP) has announced a new agreement with China’s CMOC Group, the majority shareholder at the world’s second largest cobalt mine, Tenke Fungurume Mining (TFM) in the Democratic Republic of the Congo (DRC), to ensure more Congolese participation in the value chain of the project.

CMOC is the second largest cobalt producer and a leading copper producer in the world.

The Tenke Fungurume mine covers an area of over 1,500km2. The mine produces mainly copper cathode and cobalt hydroxide.

Agreement empowers DRC subcontractors

ARSP and CMOC Group, which owns 80% of TFM, have agreed that CMOC will ensure that it is complying with regulation that subcontractors at the project must be 51% Congolese-owned.

In its role of connecting international investors with Congolese partners, ARSP is supporting CMOC in fulfilling its obligations by providing a list of recommended Congolese businesses to incorporate into the project’s value chain.

ARSP has published an initial list focused on the mining sector and TFM, including Elephant Trade SARL, Panaco, GHS, and Bofa SARL.

The list will be continuously updated to facilitate more connections between Congolese companies and international investors across all sectors.

Please find below the full list of the Congolese subcontracting companies recommended by ARSP in the link here: https://arsp.cd/wp-content/uploads/2024/04/All-PDF-sous-traitant.pdf

The announcement follows discussions between CMOC Group and Miguel Kashal Katemb, Director-General of ARSP, who welcomed the announcement.

Win-win for Congolese people

“I am delighted that we are working constructively with our partners at CMOC Group to ensure Congolese participation in the value chain at TFM, one of the world’s largest sources of the key minerals required for the energy transition.

This will be a win-win for both CMOC Group and the Congolese people in Lualaba, where they will have access to more economic opportunities and more jobs as a result of ARSP’s work.”

The agreement marks another key step in the progress made at TFM since the restart of operations in 2023.

Together, ARSP and CMOC Group will ensure that the proceeds from the copper and cobalt reserves at the mine will be more beneficial to the economic development of the region, in line with the President Félix Tshisekedi’s objectives of creating 6.4 million new jobs in the DRC.

The Regulatory Authority for Subcontracting in the Private Sector, or Authorité de Régulation de la Sous-traitance dans le Secteur Privé (ARSP), is a public regulator created by Presidential Decree No. 18/019 that regulates subcontracting activities in the private sector.

It enables inward investment across all sectors of the economy by connecting investors with Congolese partners, aiming to create a Congolese middle class by ensuring that Congolese companies benefit from investment in the country.

Please find its website here: https://arsp.cd/en/homepage/

Agreement empowers DRC subcontractors

Agreement empowers DRC subcontractors
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Agreement empowers DRC subcontractors

 

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