16th March 2018
Data source: S&P Global Market Intelligence
Major mining companies in the Democratic Republic of the Congo quit the country’s Chamber of Commerce ahead of planned talks with the government on the country’s new mining code.
Randgold Resources Ltd., Ivanhoe Mines Ltd., AngloGold Ashanti Ltd., Glencore Plc, MMG Ltd., China Molybdenum Co. Ltd. and Zijin Mining Group Co. Ltd. parted ways with the industry group, claiming that the Congolese Chamber of Commerce does not “adequately” represent their interests.
The mines these companies own make up more than 85% of the DRC’s copper, cobalt and gold production, according to a joint March 15 statement.
President Joseph Kabila recently signed the code into law, which hiked mining royalties to 3.5% with certain strategic minerals to be taxed at 10%. The new law also ended a 10-year stability clause.
In a March 7 meeting with Kabila, the miners expressed willingness to negotiate with the government, hoping that some of the problems they have with the mining code might be regulated.
