JOHANNESBURG (miningweekly.com) – A legal and technical team representing the major mining companies operating in the Democratic Republic of Congo (DRC) arrived in Kinshasa on Thursday for 30 days of engagement with the government on its new mining code.
This follows the meeting on March 7 where DRC President Joseph Kabila gave an assurance that the issues raised by the industry would be resolved through transitional arrangements, mining regulations and agreements, as well as guarantees, that need to be considered after the new code was signed into law.
Kabila last week signed the new mining code into law, replacing an earlier code from 2002. The new code raises royalties on minerals across the board and removes a clause that protected miners from changes to the fiscal and customs regime for ten years.
In a joint statement on Thursday, international mining companies, including Randgold Resources and Glencore, said that a matrix of issues and proposals regarding the mining code had been delivered to the Mines Minister. The companies were now awaiting an appointment with the Minister to discuss a programme of engagement with the government’s working group.
The companies stated that they had confirmed their willingness to negotiate additional royalties and changes to other taxes as part of this process.
The companies said they expected the process to start soon and that it would give priority to the recognition of the stability clauses contained in Article 276 of the 2002 mining code and certain mining conventions. Most notably, Article 276 provides that existing mines will benefit from the terms of the 2002 code for ten years after the implementation of the new code. This formed the basis of many investment decisions in the DRC.
The period of stability resulted in more than $10-billion in direct investments by the mining industry, which created more than 20 000 full time jobs in the DRC.
Meanwhile, diversified miners Randgold Resources’ Kibali mine, Glencore’s Mutanda mine, and Kamoto Copper Company’s Kamoa-Kakula, Kinsevere and Tenke Fugureme mines have resigned from the Federation des Entreprises du Congo, which houses the country's chamber of mines, and Congolese Chamber of Commerce with immediate effect.
These mines, which represent more than 85% of the DRC’s copper, cobalt and gold production, said the FEC does not adequately represent their interests.