DRC – Prime Minister Augustin Ponyo says he will review the DRC draft mining code, in consultation with mining-sector representatives, before consideration by parliament.
This is according to law firm ENSAfrica and its weekly African brief newsletter.
A letter from the president of the National Assembly to the Congolese Business Federation stated on 2 April that further consultation was “an indispensible imperative”. According to a leaked copy, the unrevised draft stipulates several tax increases for new exploration and exploitation contracts across the sector.
Royalties are currently set to increase from 2% to 3.5% for precious metals including cobalt, copper, and gold.
Royalties on precious gems, including diamonds, are stipulated to increase to 6% from 4%.
Tax on profits would increase by 5% to 35% and the DRC government’s equity share is stated to double to 10%.
The proposed changes do not affect current holders of exploration contracts that are protected by a 10-year stabilisation clause under the 2002 mining code. The review follows warnings from international mining companies that proposed changes would fail to compensate for DRC’s poor infrastructure and unfavourable political risk outlook.