The Democratic Republic of Congo's Autorité de Régulation de la Sous-Traitance dans le Secteur Privé (ARSP) has ordered Kai Peng Mining and Compagnie Minière de Lwishia SAS to review their contractual relationships with several subcontractors deemed ineligible. The ARSP, led by Ted Beleshayi, has given the two mining companies 30 days to present a corrective plan and comply with legal requirements for accessing subcontracting markets. This decision follows a similar move targeting Kamoto Copper Company (KCC) and Mutanda Mining (MUMI).
The ARSP's decision, adopted on September 18, 2026, was made after conducting control missions at Kai Peng Mining and Lwishia. The authority identified several contracts awarded to companies that do not meet the eligibility conditions set by Article 6 of the Congolese legislation on subcontracting. The companies have been asked not to award, renew, or prolong subcontracting contracts to ineligible enterprises and to rescind current contracts with these operators.
The control missions covered different periods for each company. At Kai Peng Mining, the examination covered the years 2020 to 2025, during which 12 companies were identified as not meeting the necessary conditions for subcontracting. Similarly, at Lwishia, 10 suppliers or service providers were found to be ineligible for subcontracting activities during the years 2023, 2024, and 2025.
The ARSP has demanded that Kai Peng Mining and Lwishia present a detailed plan to bring their practices into compliance within 30 days. The plan should include a calendar for terminating the targeted contracts, evidence of withdrawing the concerned companies, and an explanation of how future contracts will be awarded to eligible operators.
The ARSP's move is part of a broader effort to regulate subcontracting in the Congolese mining sector. The authority has intensified controls on subcontracting practices, aiming to ensure that contracts are awarded transparently and to companies that meet the legal requirements. The legislation reserves subcontracting activities for Congolese companies with their headquarters in the country, with certain exceptions.
Failure to comply with the ARSP's decision could expose Kai Peng Mining and Lwishia to sanctions under the legislation, including those outlined in Article 30 quinquies of Law No. 17/001 of February 8, 2017, as amended and supplemented by Law No. 26/017 of June 30, 2026. The ARSP plans to conduct further control missions to verify the implementation of the corrective measures.
The decision against Kai Peng Mining and Lwishia follows a similar measure taken against KCC and MUMI, highlighting the ARSP's increased scrutiny of subcontracting practices in the mining sector. The authority's efforts aim to create opportunities for eligible subcontractors and ensure compliance with Congolese regulations.
Key points
- The ARSP has ordered Kai Peng Mining and Lwishia to end contracts with ineligible subcontractors within 30 days.
- The decision aims to ensure that subcontracting contracts are awarded transparently and to companies that meet the legal requirements.
- Failure to comply could expose the companies to sanctions under the legislation.
