Congo Orders Glencore, ERG, Ivanhoe and Sicomines to Drop 1,800+ Ineligible Subcontracts as Local-Content Audits Loom for 2027

• The orders: Decision 020/ARSP/DG/2026 of 11 September required Glencore's Kamoto Copper Company and Mutanda Mining to end contracts with 1,540 ineligible suppliers (955 and 585), stop new awards and file remediation plans within 30 days.

• The wave: similar injunctions followed against Kai Peng, Comilu, ERG's Frontier, Boss Mining and Metalkol, Ivanhoe's Kipushi and Sicomines: nine companies and more than 1,800 contracts.

• The law: Law No. 17/001 of 2017 on subcontracting, amended by Law No. 26/017 of 30 June 2026, reserves subcontracting to eligible, majority Congolese-owned firms.

• What's next: a local-content law from 1 January 2027, with sanctions and three-year compliance plans, plus annual audits of major miners.

• The paradox: 83% of US$3.7 billion in 2025 subcontracts already went to majority Congolese-owned firms.

• The gap: the 5% employee-share rule under Article 71 bis of the Mining Code passed its 31 July deadline without announced transfers by major producers.

• Legal risks: stability clauses, legitimate expectations and due process for miners; beneficial-ownership and due-diligence risks for the new supplier base.

The 2017 subcontracting law. Congo's local-content regime for services is anchored in Law No. 17/001 of 8 February 2017 on subcontracting in the private sector, as amended and supplemented by Law No. 26/017 of 30 June 2026. In broad terms, the law reserves subcontracting to companies with majority Congolese capital that are established in Congo, and requires principal companies, including miners, to use eligible subcontractors. Article 6 sets the eligibility conditions that ARSP applies when it reviews supplier lists.

The regulator. The Regulatory Authority for Subcontracting in the Private Sector (ARSP) is the public body charged with monitoring, regulating and enforcing the subcontracting law. Its powers include inspecting principal companies, examining their financial statements and supplier lists, issuing binding injunctions and imposing sanctions.

A new leadership, a new tempo.

From case-by-case to permanent oversight. ARSP says sector-specific rules for mining and other industries are being drafted, covering penalties and mandatory three-year compliance plans. Combined with annual audits of major miners from 2027, that would turn local content from periodic inspection campaigns into a standing compliance regime

Between 11 and 29 September 2026, ARSP issued a series of formal injunctions against major mining companies in Lualaba and Haut-Katanga. In total, the decisions affected nine companies and more than 1,800 subcontracting contracts.

The decisions:

What the orders require. The decisions follow a common template:

• terminate ongoing contracts with the subcontractors listed as ineligible;

• not award, renew or extend contracts to them until their status is regularised with ARSP;

• remove them from the company's subcontractor records;

• submit a remediation plan within 30 days of notification; and

• accept a later ARSP check on implementation.

The regulator also urged the companies to use more Congolese-owned suppliers.

Company responses. An Ivanhoe spokesperson said the company was in ongoing communication with ARSP and that the Kipushi mine complies with subcontracting regulations. Glencore and Sicomines had not responded publicly when the orders were reported.

What "ineligible" means. In this context, ineligible does not necessarily mean a supplier is foreign. It means the supplier has not shown that it meets the law's eligibility conditions: majority Congolese capital, registration with ARSP and the other requirements of Article 6. Some suppliers may regularise by registering and documenting their ownership, which is why the orders apply "until regularised".

The government's own figures. According to ARSP Director General Beleshayi Kasanda, 167 major companies declared US$3.7 billion in subcontracting contracts in 2025. Of that, US$3.1 billion, or about 83%, went to companies majority-owned by Congolese, including US$2.9 billion in mining.

The paradox. If 83% of declared subcontracting value already goes to majority Congolese-owned firms, why order the termination of more than 1,500 supplier relationships at two mines alone? There are several readings:

• Count versus value. The share of contract value going to Congolese firms can be high even when many individual suppliers, often smaller or specialised, are ineligible. Ineligible suppliers can be numerous but each worth little.

• Declared versus actual. The 83% figure is based on companies' declarations. Inspections exist to test them.

• Ownership versus capacity. A firm can be majority Congolese-owned on paper while relying on foreign partners for equipment, expertise or finance. Enforcement that focuses on registration and ownership may reshape who holds contracts without necessarily building domestic capacity.

• Distribution. Local-content enforcement also affects which Congolese firms win, for example whether contracts stay concentrated among established suppliers or open up to new entrants. The Congo Mining Network has noted that the orders could open access to contracts that have remained concentrated among established suppliers.

The policy question. The drive raises a central question for the 2027 regime: is it about deepening Congolese industrial and service capacity, or mainly about who wins contracts? The answer will depend on how the sector rules define eligibility, how strictly beneficial ownership is checked, and whether compliance plans include training, technology transfer and supplier development, not just reallocation.

The rule. Article 71 bis of the Mining Code and Article 144 bis of the Mining Regulations, both introduced in the 2018 reform, require 10% Congolese private participation in mining company capital:

The rule sat largely unenforced from 2018.

The deadline. In a letter of 30 January 2026, Mines Minister Louis Watum Kabamba required operators to prove that Congolese employees hold at least 5% of their capital. He set a moratorium ending 31 July 2026. Proof could include updated articles of association, shareholder agreements and share registers valid under Congolese law and OHADA Uniform Acts. Non-compliance exposes companies to sanctions under the Mining Code. The same Council of Ministers meeting directed a similar 5% employee-stake push for telecoms companies.

What happened. Major operators, including Glencore, Ivanhoe, CMOC and ERG, sought more time through the Chamber of Mines. They pointed to unresolved questions:

• Does the rule apply retroactively to existing mining companies?

• Which shareholder must transfer the equity: the parent, the state partner or all shareholders pro rata?

• What structure should employees use: direct shares, a trust or a collective vehicle?

Unions pressed for enforcement. The deadline passed on 31 July with no major producer publicly announcing completed transfers, and no enforcement action has been publicly reported since.

Why it matters. The contrast with ARSP's September orders is stark. On subcontracting, the state is moving from warnings to injunctions. On employee equity, a deadline set by the Mines Minister has passed quietly. Whether the 5% rule is enforced, deferred or clarified by regulation is now a test of how consistently Kinshasa applies its local-content laws.

1. Local content in services and trade rules

Congo's subcontracting law reserves service contracts for companies with majority Congolese capital. In WTO terms, this is a restriction on trade in services, because it limits foreign service suppliers' market access and national treatment. Under the General Agreement on Trade in Services, such limits are permissible unless a country has made unqualified commitments in the relevant sectors. Congo's exposure therefore depends on its GATS schedule, and many developing countries have scheduled few commitments in mining-related services. Where local-content rules require miners to buy goods locally, the WTO Agreement on Trade-Related Investment Measures (TRIMs) is more directly engaged.

2. Investment protection and mining conventions

Major miners operate under mining titles, conventions and in some cases investment treaties. Three issues arise:

• Stability clauses. Some mining conventions include stability protections. Whether new or newly enforced local-content obligations count as a protected change depends on each convention's wording and the transitional provisions of the 2018 Mining Code.

• Legitimate expectations. Retroactive scrutiny of contracts awarded from 2020 to 2025, under a 2017 law whose enforcement has only recently intensified, may be challenged as unfair if operators relied on past practice or tacit approval.

• Due process. ARSP's new inspection framework provides a formal right of response before findings are confirmed. Respecting it, and giving clear reasons in each decision, strengthens the regulator's position if decisions are challenged in Congolese courts or international arbitration.

3. Retroactive equity transfers

The 5% employee-equity rule raises sharper property-law and investment-treaty questions. Requiring existing shareholders to give up equity, without clarity on valuation or compensation, could be argued to be a partial expropriation, unless the transfer is properly priced or the obligation applies only prospectively. That uncertainty helps explain why major producers sought clarification instead of rushing to comply.

4. Supply-chain due diligence

International buyers of Congolese copper and cobalt increasingly require supply-chain due diligence, including checks on beneficial ownership, corruption risk and human rights in the supplier base. A sudden shift to new local suppliers can raise those risks if done without proper vetting. Miners will need to balance ARSP compliance with their own due-diligence and anti-corruption obligations, including under foreign laws that apply to listed parent companies.

5. A regional pattern

Congo's push mirrors moves elsewhere in Africa. Kenya's Local Content Bill would impose sourcing and staffing quotas on foreign firms. Nigeria is tightening its free zone rules, and Ghana's new cocoa law reserves half the crop for local processing. Across the continent, governments are converting local-content goals into enforceable obligations.

Major miners (Glencore, ERG, Ivanhoe, Sicomines, CMOC, Zijin and others)

Now: companies named in September must end contracts with listed suppliers, stop new awards to them, and file remediation plans within 30 days. Others should expect similar reviews as ARSP's inspection corps expands. From 2027: annual local-content audits, sector-specific sanctions and mandatory three-year compliance plans. What to do: audit every supplier against ARSP eligibility now, help viable suppliers regularise, map critical services where no eligible Congolese supplier exists and document the case for any exception. Prepare a credible three-year plan ahead of the 2027 rules, and resolve the 5% employee-equity question before enforcement arrives.

Foreign and ineligible suppliers

Now: contracts with named miners must end, and new awards are barred until they regularise. What to do: establish whether regularisation is possible, through registration with ARSP and a compliant Congolese ownership structure, or partner with eligible Congolese firms as subcontractors or joint-venture partners. Watch for beneficial-ownership scrutiny of nominee arrangements.

Congolese SMEs and suppliers

The opportunity: more than 1,800 contracts are being reopened, and annual audits will keep pressure on miners to use eligible local firms. The challenge: meeting miners' technical, safety and financial standards. Firms that register with ARSP, document ownership and build capacity will be best placed.

Mine workers and unions

Subcontracting: more contracts for Congolese firms should mean more local employment, if the firms hire locally. Equity: the 5% employee-share rule remains unenforced after the 31 July deadline. Unions will keep pressing for transfers, and for clarity on dividends, voting rights and governance of employee holdings.

Lenders, offtakers and investors

Sudden supplier terminations can disrupt operations, and the 5% equity rule could dilute existing shareholders. Lenders should review covenants and change-of-ownership provisions. Offtakers should review supply-continuity and force majeure clauses. Investors should price in rising local-content obligations from 2027.

Government and ARSP

The credibility of the regime rests on consistency: enforcing the subcontracting law and the 5% equity rule on the same footing, publishing clear sector rules before 1 January 2027, and showing that local content builds capacity rather than simply reallocating contracts.

Lawyers and advisers

The work includes supplier eligibility reviews, remediation plans, responses to ARSP injunctions, structuring compliant joint ventures, advising on employee-share schemes and valuation, and assessing stability-clause and investment-treaty protections.

What did ARSP order Glencore to do? Under Decision 020/ARSP/DG/2026 of 11 September 2026, ARSP ordered Kamoto Copper Company and Mutanda Mining to end contracts with 1,540 ineligible suppliers (955 at KCC and 585 at Mutanda), stop new awards to them, and submit remediation plans within 30 days.

Which other miners were targeted? Kai Peng Mining, Compagnie Minière de Lwisha, ERG's Frontier, Boss Mining and Metalkol, Ivanhoe's Kipushi Corporation, and Sicomines received similar orders in September 2026.

What changes in 2027? A new local-content law takes effect on 1 January 2027, with sector rules including sanctions and mandatory three-year compliance plans. ARSP will begin annual audits of major miners.

How much subcontracting already goes to Congolese firms? ARSP says US$3.1 billion of US$3.7 billion in 2025 subcontracts declared by 167 major companies, about 83%, went to majority Congolese-owned firms.

What is the 5% employee-share rule? Under Article 71 bis of the Mining Code, Congolese employees must hold 5% of a mining company's capital. The Mines Minister set a 31 July 2026 deadline, which passed with no major producer announcing completed transfers.