Ivanhoe Mines Ltd (IVPAF)

[JB3729]

A look at the proposed changes to the DRC's mining code. The proposed changes were dropped in February.

Activists in the Democratic Republic of Congo are pressing the government to revive plans for a new mining code, claiming the country, which is Africa’s top copper producer and the world’s largest source of cobalt, needs the higher revenues a revised legislation would generate.

Congo began reviewing the 2002 mining code in 2012 and last year it proposed hiking profit taxes to 35% from 30%, raising the state’s free share of new mining projects to 10% from 5% and royalties on copper and cobalt revenue to 3.5% from 2%.

In February, however, authorities dropped the planned changes as the move could have driven away investors at a time of historically low commodity prices and energy shortages that were driving down output in the country.

http://www.mining.com/activists-urge-congo-government-to-pass-new-mining-code/?utm_source=digest-en-mining-161028&utm_medium=email&utm_campaign=digest