Policy Details
What Changes
Royalty on cobalt and coltan raised from 2% to 10% (classified as strategic minerals). Royalty on copper and gold raised from 2% to 3.5%. New 50% super-profits tax on earnings when commodity prices exceed by 25% the price in the bankable feasibility study. Mandatory transfer of 10% non-dilutable equity to the government on application for or transfer of mining rights, with an additional 5% on each renewal. Mandatory community development plans and local content requirements including hiring of Congolese workers. Mandatory disclosure of contracts and revenue payments. 2025 addition: cobalt export quota system administered through ARECOMS, with 10% royalty pre-payment required within 48 hours of filing; annual quota set at 96,600 tonnes from 2026; all export lots subject to physical inspection and joint sampling before customs clearance.
Who Is Affected
Every mining company operating in the DRC — including Glencore, Ivanhoe Mines (Kamoa-Kakula), CMOC, ERG, and artisanal/small-scale mining operators. Directly affects all cobalt offtakers and battery supply chains globally, given the DRC supplies over 70% of global cobalt. Also affects capital providers financing DRC mining projects, as the royalty and super-profits tax directly impact project economics and debt service capacity. Connected to: Lobito Corridor greenfield extension, US-DRC minerals partnership, proposed Inga 3 hydropower project.
Why It Matters
The DRC's mining code is the regulatory foundation for every critical minerals investment in the country and the mechanism through which the DRC exerts control over the global cobalt supply chain. Every project, capital, and corporate record in your database touching the DRC — and every global battery supply chain story — connects back to this framework. The 2025 export quota system is the most significant enforcement escalation since the 2018 Code, and is actively reshaping how miners plan inventory, logistics and cash flow.
Expected Impact
Sustained pressure on mining company margins, particularly for cobalt given the 10% royalty rate and pre-payment requirement. Progressive formalisation of artisanal mining through the quota eligibility criteria. Increased DRC government revenues from the sector. Continued tension between the DRC government's mineral sovereignty agenda and the investment certainty that major mining companies require for long-cycle capital commitments.
Risks / Uncertainties
Super-profits tax creates significant unpredictability for project financing when cobalt prices are volatile — lenders price this risk into debt terms, increasing the cost of capital for DRC mining projects. Export quota administration through ARECOMS creates a new layer of regulatory risk and potential bottleneck for operators dependent on timely shipments. Poor transport links and electricity shortages remain structural cost drivers regardless of the royalty framework. Artisanal and small-scale mining is widespread and creates traceability and compliance challenges for industrial miners selling into international battery supply chains subject to OECD and US conflict minerals due diligence requirements.
What Happens Next
Further ARECOMS regulatory instruments tightening export monitoring and compliance; possible revision of quota allocations as the 96,600 tonne annual cap is enforced; continued DRC government push for in-country beneficiation and refining rather than raw mineral export
Commercial Opportunity
The quota and compliance framework creates demand for specialist regulatory advisory services, customs compliance technology, and in-country logistics and monitoring providers. The beneficiation push creates investment opportunity in cobalt refining and battery precursor manufacturing within the DRC — aligned with both the US-DRC minerals partnership and the EU Critical Raw Materials Act sourcing requirements.