New Iron Ore, Phosphate Projects Signal Growth in Congo’s Mining Industry
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With the oil sector contributing over half of GDP for more than five decades, diversification is a top priority on the Republic of Congo’s national agenda. While one potential avenue is the country's estimated 10 trillion cubic feet of natural gas reserves, another is its rich estimated mineral resources, which include iron ore, manganese, diamonds, potash, phosphate, copper, lead, zinc and gold. In August 2024, the Congo began producing iron ore, with Sapro SA Group delivering its first 800 tons from the Mayoko deposit to Pointe-Noire. The company aims for a long-term production target of 150 million tons per year, positioning mining as a key economic sector. To achieve this goal, the Congolese government is focused on enhancing investments while addressing infrastructure and regulatory challenges.
The Congo is estimated to hold substantial mineral resources: 800 million tons of magnesium salt deposits around Loemé, 690 million tons of inferred iron oxide reserves at Avima, an estimated 242.5 million tons of potash at Kouilou by Pointe-Noire, with one megaton of lead stored in Yanga Koubenza’s copper-zinc polymetallic stores. Already 150 kg of gold per annum are produced, along with 50,000 carats in diamonds. Still to be developed are latent reserves of strategic minerals such as titanium, tungsten, niobium tantalum and tin, along with the heavy minerals ilmenite, rutile, monazite and zircon all discovered in sub-soil testing. The potential for gold has been identified at Mount Avima, the Chaillu Massif and Kelléme Bomo, with diamonds to be drawn from Kouilou, Likouala, Niari and Lekoumou, along with Kelléme Bomo and Chaillu.
To attract investors and tap into its mineral wealth, the Congo has introduced several regulatory reforms and established new frameworks over the past two decades. The Congo’s new Mining Code was finalized in 2005, allowing foreign entities to control mineral extraction operations for the first time and setting attractive terms for exploration and exploitation agreements. Federal dues were set at 3% for metals and phosphate, 5% for precious metals and gems, with a 20% profit tax for quarry operations and 30% for straight mining. Also, the government holds a 10% non-contributing stake in all projects with the additional equity purchasing rights, in a move akin to the 2016 Hydrocarbons Code’s state-owned SNPC stake for hydrocarbons.
In 2008, the Bureau for Assay, Evaluation and Certification of Precious Metals was established to supervise and control extraction of the country’s rich reserves of artisanal alluvial diamonds. Four years later, the mining sector experienced a revival following the launch of a governmental economic diversification strategy, which established clear objectives for the mining industry’s growth and development, in collaboration with the World Bank.
These efforts have yielded promising outcomes. Beyond the first iron ore exports, the Congo is set to host a major new phosphate project, spearheaded by Congolaise des Mines du Congo. Located in the Hinda District of the Kouilou department, the project is moving forward with a feasibility study, aiming for an annual production rate of four million tons. With an investment of $600 million, the venture could generate around 500 new direct jobs. With new projects and investments underway, the Republic of Congo’s mining sector holds the potential to transform the nation's economy, creating jobs and contributing to long-term stability and growth.
The inaugural Congo Economic and Investment Forum, set for March 26-27, 2025 in Brazzaville, will bring together international investors and local stakeholders to explore national and regional energy and infrastructure opportunities. The event will explore the latest mining sector projects and provide updates on ongoing expansions across the country.