IMPACT OF NEW MINING TECHNOLOGIES ON LOCAL PROCUREMENT IN THE DEMOCRATIC REPUBLIC OF THE CONGO
Summary
This report examines the adoption of new mining technologies in the Democratic Republic of the Congo (DRC) and their impact on local procurement. While large-scale mining projects like Kibali and Kamoa-Kakula utilize advanced automation and green technologies, local suppliers struggle to capture high-value contracts due to gaps in capital, skills, and infrastructure. The report analyzes the 2018 Mining Code's efforts to mandate local content and identifies systemic barriers—including a weak manufacturing sector and outdated intellectual property laws—that hinder the transfer of technology to Congolese enterprises.
Key insights
- The DRC exhibits a sharp divide in mining technology: while artisanal and small-scale mining (ASM) remains low-mechanized, large-scale mining (LSM) projects are adopting some of the world's most advanced technologies. Examples include the Kibali gold mine, which features a "fully automated production level and material handling system" and driverless loaders, and the Kamoa-Kakula copper project, which aims to produce the "greenest copper" using renewable hydroelectricity and automated mobile equipment.
- The adoption of new mining technologies in the DRC is primarily driven by the need for increased efficiency, productivity, and improved human safety and environmental protection. Key technologies being implemented include smart sensors, geo-positioning devices, advanced analytics, drones, and electric mining equipment. These innovations allow for the use of "real-time data to improve decision-making processes" and reduce human exposure to risks such as rockfalls.
- Local Congolese suppliers are largely excluded from high-value procurement contracts, with less than 10% of the equipment and operational procurement market captured by companies with Congolese capital. Most top expenditure categories—excluding electricity—are supplied by foreign companies or local subsidiaries of foreign firms. Local companies are primarily restricted to lower-spending categories such as catering, printing, and basic logistics.
- Significant barriers prevent local suppliers from leveraging new technologies, including a lack of access to capital, a deficit in specialized technical skills, and a lack of trust from mining companies regarding reliability. Additionally, language barriers (English vs. French) and a lack of digital culture among SMEs hinder their ability to access procurement notices via online portals.
- The Mining Code of 2018 attempts to foster the local economy by introducing strict local content requirements, including mandates that at least 10% of capital be owned by Congolese citizens and the priority recruitment of nationals. It also requires mining companies to implement training programs to ensure Congolese personnel can occupy leadership positions within 10 years of commercial production.
- The effectiveness of the 2018 Mining Code is undermined by unclear legal interpretations and contradictions between the Code and the Subcontracting Law (Law No. 17/001). Specifically, there is uncertainty regarding the definition of a 'subcontractor' and whether the 40% limit on the overall value of a subcontracting contract applies to the main contractor of a mining company.
- The DRC's regulatory framework for intellectual property rights (IPR) is outdated and largely unenforced, which discourages local investment in new technologies. The country is currently out of compliance with international TRIPS obligations, lacks specialized IPR courts, and provides only 15 years of patent protection instead of the standard 20.
- Severe infrastructure deficits, particularly in electrification and internet connectivity, force mining companies to invest in their own power generation. While internet penetration grew to 23.2% by January 2021, the overall lack of a national power a digital presence for most businesses makes it difficult for local a local supply chain to scale.
- Despite systemic challenges, there are emerging success stories in local procurement, particularly in agriculture and renewable same same same-sector services. Examples include Tenke Fungurume's Maize-Credit Program and the Lowa Alliance at the Mpama tin mine, which integrate same-sector services support same-sector services support local farmers in supplying food to mines.
Cite the original document
- APA
- International Institute for Sustainable Development (2021). IMPACT OF NEW MINING TECHNOLOGIES ON LOCAL PROCUREMENT IN THE DEMOCRATIC REPUBLIC OF THE CONGO. https://www.iisd.org/system/files/2021-12/impact-new-mining-technologies-democratic-republic-congo-en.pdf
- Chicago
- International Institute for Sustainable Development. IMPACT OF NEW MINING TECHNOLOGIES ON LOCAL PROCUREMENT IN THE DEMOCRATIC REPUBLIC OF THE CONGO. 2021. https://www.iisd.org/system/files/2021-12/impact-new-mining-technologies-democratic-republic-congo-en.pdf.
- Wikipedia
- {{cite report |author=International Institute for Sustainable Development |title=IMPACT OF NEW MINING TECHNOLOGIES ON LOCAL PROCUREMENT IN THE DEMOCRATIC REPUBLIC OF THE CONGO |date=December 2021 |url=https://www.iisd.org/system/files/2021-12/impact-new-mining-technologies-democratic-republic-congo-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{internationalinstituteforsustainabledevelopment2021impact, author = {{International Institute for Sustainable Development}}, title = {{IMPACT OF NEW MINING TECHNOLOGIES ON LOCAL PROCUREMENT IN THE DEMOCRATIC REPUBLIC OF THE CONGO}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = dec, url = {https://www.iisd.org/system/files/2021-12/impact-new-mining-technologies-democratic-republic-congo-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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