The Autorité de Régulation de la Sous-Traitance dans le Secteur Privé (ARSP) in the Democratic Republic of the Congo has taken a significant step towards ensuring compliance with regulations in the mining sector. On September 25, the ARSP issued a decision, numbered 026/ARSP/DG/2026, instructing three subsidiaries of the Eurasian Resources Group (ERG) to terminate their contracts with 128 companies deemed ineligible for subcontracting. The subsidiaries affected are Frontier SA, Boss Mining SAS, and Metalkol SA.
According to the ARSP, a control mission conducted at these companies revealed that 77 ineligible subcontractors were identified at Frontier, 28 at Boss Mining, and 23 at Metalkol, totaling 128 companies. The control covered the years 2023 to 2025. The regulator found that these companies had been awarded contracts despite not meeting the eligibility criteria set out in Article 6 of Law No. 17/001 of February 8, 2017, as amended by Law No. 26/017 of June 30, 2026.
The law reserves subcontracting for Congolese companies with their headquarters in the Democratic Republic of the Congo, unless a derogation is granted. The ARSP's decision is not limited to a request for compliance but takes immediate effect. The three ERG subsidiaries are required to no longer award, renew, or extend contracts to the companies listed in the annex to the decision. They must also terminate existing contracts and remove these companies from their subcontractor files until they are eventually regularized.
The ARSP has given the concerned companies a 30-day deadline to present a corrective plan. This plan must include a calendar for the termination of contract execution, justifications for the removal of the concerned subcontractors, and measures to promote access for eligible companies to subcontracting opportunities. The regulator will conduct a follow-up control to verify the effective implementation of these measures. Failure to comply may result in sanctions provided by the legislation, particularly those outlined in Article 30 quinquies.
This decision marks a new stage in the application of rules related to local content in the Democratic Republic of the Congo. The ARSP is strengthening its control over major mining operators to ensure that Congolese companies have access to subcontracting opportunities. With this decision, ERG sees three of its entities simultaneously facing a compliance procedure affecting several dozen contracts.
The ARSP's move sends a clear message to mining operators: the eligibility of subcontractors is no longer just an administrative requirement but an element that the regulator will directly control in the awarding and execution of contracts. The regulator aims to ensure that the rules governing access to subcontracting opportunities for Congolese companies are respected.
The decision is part of the ARSP's efforts to promote compliance with regulations in the mining sector and to ensure that Congolese companies benefit from subcontracting opportunities. The regulator's actions are expected to have a significant impact on the mining industry in the Democratic Republic of the Congo, promoting greater participation by local companies in the sector.
Key points
- The ARSP has ordered three ERG subsidiaries to terminate contracts with 128 ineligible companies.
- The regulator has given the companies 30 days to present a corrective plan.
- The decision aims to promote compliance with regulations and ensure that Congolese companies benefit from subcontracting opportunities.
