The Democratic Republic of Congo’s (DRC) president Joseph Kabila on Friday signed the revised Mining Code into legislation – just two days after government met with the country’s major mining houses to negotiate terms that would be beneficial to all stakeholders.
Not only are some of the mining companies going to be bitterly disappointed as this action follows government’s interest in hearing them after extensive face-to-face engagements last week, but comes off the back of vocal statements from the likes of Randgold Resources saying they were not offered the opportunity to give feedback when the revised Mining Code was first introduced.
Randgold Resources’ CEO Mark Bristow has acknowledged openly that the code will detract investment in the country moving forward. Click here to listen to Bristow's comments.
The revised code is likely the result of the boom in demand of cobalt for electric vehicles and lithium ion batteries – which the DRC is richly endowed with. A significant increase in tax on the metal is set to benefit the government significantly. A super tax has also been introduced.
Apparently, president Kabila has also stated that he will take the concerns of mining companies into consideration on a case by case basis.