* January circular requires miners to allocate 5% equity to
Congolese workers
* No mining company has yet complied, union leader says
* Mines ministry to meet unions on Friday, union leader says
By Ange Kasongo and Maxwell Akalaare Adombila
KINSHASA/DAKAR, June 18 (Reuters) - Miners in the Democratic
Republic of Congo are seeking a delay to a government directive
requiring them to grant a 5% equity stake to Congolese
employees, while unions are pushing for immediate enforcement
ahead of a July 31 deadline, according to a document and three
industry sources.
No company has yet complied with the directive, a union
leader said, even as authorities step up efforts to enforce
local participation in a sector dominated by foreign investors.
Congo is the world's top cobalt producer and second-largest
copper producer.
African governments are increasingly seeking a larger share
of mineral wealth as commodity prices rise, with Congo's rule
reinforcing an existing legal provision.
MINERS REQUEST MORATORIUM
A January 30 circular, seen by Reuters this month, requires
miners to allocate the 5% stake to Congolese workers and submit
proof of compliance.
Congo's Chamber of Mines says key questions remain
unresolved, including whether existing shareholders must
transfer equity and whether the requirement applies
retroactively to long-established operations, a mining executive
and two union leaders said.
The sources requested anonymity as they were not authorised
to speak to media.
Major miners including Eurasian Resources Group, Ivanhoe
, Glencore ( GLCNF ) and China's CMOC met the
chamber on June 11 to coordinate a response, the executive said.
Glencore ( GLCNF ) and Ivanhoe declined to comment, while CMOC and ERG did
not immediately respond.
The chamber has formally requested a moratorium to allow
consultations with stakeholders, though no alternative timeline
has been proposed, the executive added.
"This concern is widely shared by major companies," the
executive said, adding many were still awaiting clarity on the
final framework.
Congo's mines ministry and Chamber of Mines did not
immediately respond to requests for comment.
MINES MINISTRY TO MEET UNIONS
Congo's mines ministry will meet unions on Friday to
"explain more" on the directive, one union leader said.
Unions accuse mining companies of dragging their feet.
A second union leader said miners had previously allocated
about 3% to worker-linked schemes, but that oversight of the
funds lacked transparency.
"That is why the government wants them to increase it to
5%," the second source said, adding it could support development
in mining regions.
"On the union side, we are demanding immediate
implementation."