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DRC Regulator Orders Cancellation of Kibali Subcontracting Contracts

DRC Regulator Orders Cancellation of Kibali Subcontracting Contracts

Two years after tensions that led to a settlement agreement with the Democratic Republic of Congo's private-sector subcontracting regulator, Kibali Gold Mine is once again under scrutiny. In a decision signed on Feb. 17, 2026, Director General Miguel Kashal of the Autorité de régulation de la sous-traitance dans le secteur privé (ARSP) ordered the cancellation of several subcontracting agreements between Kibali, the DRC's top gold producer, and three service providers: KMS SAU, Boart Longyear SAU and TAI Services SAS. Kibali operates the Kibali gold mine in Haut-Uélé province.

The ARSP contends that KMS SAU and Boart Longyear SAU are not majority Congolese-owned companies and therefore do not meet the eligibility requirements set out in Article 6 of the Feb. 8, 2017 subcontracting law. Little information is publicly available on KMS, but Boart Longyear is an Australian mining group specializing in exploration and production drilling, as well as geotechnical services and drilling equipment and technologies.

According to the regulator, Boart Longyear, which operates in Australia, Africa and the Americas, was granted a waiver in September 2024. However, the ARSP said the conditions attached to that waiver, notably those related to technology transfer, were not complied with.

The situation regarding TAI Services SAS is different. The ARSP argues that the contract for the purchasing center positioned the company as a "commercial intermediary" between Kibali and Congolese contractors, a situation that sparked tensions among local communities in Watsa territory, where the mine is located. The decision states that such an arrangement, including the collection of a percentage-based commission on contracts awarded to local subcontractors, "runs counter to local content requirements." The regulator added that the contractual relationship must be direct between the principal company and the eligible subcontractor.

Earlier dispute

The Feb. 17 decision follows an earlier episode in January 2024, when the ARSP threatened to shut the mine and announced legal proceedings against a subcontracting company, TCFF, which it accused of capturing the bulk of contracts and collecting commissions. A settlement agreement between the ARSP and Kibali was ultimately signed after those discussions.

At the time, the regulator said more than 390 contracts had been opened to eligible subcontractors and highlighted a restructuring of the contractual framework. Mine operator Barrick Mining said in a statement published on March 1, 2024, that it was working "with the ARSP on a series of local content initiatives." That collaboration did not result in full compliance with the law, as the latest decision indicates.

The violations cited in the latest ruling are nonetheless less serious than those raised in 2024. At that time, Kibali was accused of setting up a front company to carry out subcontracting work linked to its own production activities. "We conclude unequivocally that TCFF is none other than Kibali Gold in disguise," Kashal said then. The 2026 decision does not allege a systemic scheme to capture subcontracting contracts but instead cites a limited number of instances of non-compliance.

A strategic mine

The Feb. 17 decision is based on findings from an inspection mission conducted in November 2025. During that visit, Kibali Gold's director general committed to implementing the recommendations. "We have an inspection mission currently at Kibali (...). Where improvements are needed, we will work with the ARSP and the provincial authorities to address them, and where progress has already been made, we will look at how to build on it," Cyrille Mutombo said.

To prevent any abrupt disruption to operations, the ARSP has provided for a transition period to allow new tenders to be launched in compliance with the law.

As the only industrial enterprise in Haut-Uélé province, Kibali is a key driver of economic activity for both the province and the country. In July 2025, Barrick said in a press release that $3.1 billion had been paid to local contractors and partners since 2009. The group said it supports more than 700 Congolese companies and noted that Kibali's tenders are published jointly with the ARSP. Barrick had already stated in March 2024 that 95% of the mine's more than 6,500 employees were Congolese nationals.

Kibali is also a key earnings contributor for its shareholders: Barrick Mining holds 45%, AngloGold Ashanti 45% and state-owned Sokimo 10%. The mine posted revenue of $2.3 billion in 2025, up 40% from 2024. That growth lifted Kibali's contribution to Barrick's results by 67%, from $316 million in 2024 to $527 million in 2025, despite a 13% increase in costs.

Pierre Mukoko & Timothée Manoke 

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