Miners seek DRC concessions
Miners in the Democratic Republic of Congo (DRC) are seeking concessions under the nation’s new industry code and delaying a challenge through arbitration to wring out a compromise in the world’s main source of cobalt and Africa’s biggest copper producer.
Miners in the Democratic Republic of Congo (DRC) are seeking concessions under the nation’s new industry code and delaying a challenge through arbitration to wring out a compromise in the world’s main source of cobalt and Africa’s biggest copper producer.
Glencore and Randgold Resources have opposed the new code, which raised royalties, introduced taxes and cancelled a clause that would have protected them from fiscal changes for 10 years.
The miners submitted counterproposals in March but have yet to receive a response.
In the meantime, Randgold is talking to the government about offsetting some of the increased costs it is facing under article 220 of the code, which allows the government to offer relief to companies operating in remote areas that lack infrastructure. Similar incentives may be available to Alphamin Resources, which is building a tin mine in North Kivu province.
“We have been very clear; we don’t believe that the code is in the best interests of the country and the mining sector,” Randgold CFO Graham Shuttleworth said in an interview. “We need to consider all our options
— arbitration and negotiating a package under article 220 — all of those options are open to us.”
Randgold’s Kibali project is Africa’s biggest gold mine and is expected to produce more than 700,000oz of gold in 2018. It is in northeast DRC’s remote HautUele province.
Alphamin is building a tin mine in North Kivu, a province with poor infrastructure, where armed militia carry out sporadic attacks on civilians.
North Kivu’s governor has submitted an article 220 request to Prime Minister Bruno Tshibala on behalf of miners in the province, Alphamin CEO Boris Kamstra said.
“We have not been informed of any decisions under consideration or negotiations which may occur,” he said in reply to questions.