Democratic Republic of Congo Relax Demand for Higher Mining Stake

Democratic Republic of Congo plans to lower it stake demand from mining project in the country following an outcry from investors in the vast mineral-rich nation, according to report by Reuters. The central African country had proposals to increase the government’s share in new mining ventures and to triple copper royalties.

Chantal Bashizi, the vice-president of a commission studying a new mining code, advised that the government had already lowered its proposed stake in new projects from 35 percent to 15 percent. Furthermore, she stated, “We are now discussing going further, down to 10 percent… In many of the countries in the region it is 10 percent, I think we will approve that.”

Congo’s rich deposits of diamonds, gold, copper, tin and coltan attracts mining investors from across the world. Reuters reported that the International Monetary Fund (IMF) said, last week, that Congo produced 942,000 tonnes of copper last year, a 52 percent increase year-on-year, making it Africa’s largest producer of the metal, according to commodities analysis company CRU Group.

Bashizi told Reuters that President Joseph Kabila’s government was revising Congo’s 2002 mining code in a bid to earn more from mining, while keeping the regulatory environment competitive and attractive to investors. She said, “We know that the original code was extremely competitive. We’re seeking to re-establish a better balance while keeping within the regulatory standards and norms of our neighboring countries.”

The Congolese government has proposed tripling copper royalties to 6 percent from 2 percent but Bashizi told Reuters that this was also under discussion.

Source: AFK Insider