Mining Firm Representatives To Meet Congo Government Again - Randgold

15th Mar 2018 14:11

LONDON (Alliance News) - Randgold Resources Ltd said Thursday a team representing major mining companies is in the Democratic Republic of the Congo to meet the government for talks on its new mining code.

In a meeting on Wednesday last week, mining companies "confirmed their willingness to negotiate additional royalties and changes to other taxes", Randgold said.

The companies, it said, expect the process will start soon and that it will give priority to a clause providing for 10 years of stability after changes are made to the mining code, a clause which formed the basis of many investment decisions in DRC.

This period of stability resulted in over USD10 billion in direct investments by the mining industry which created over 20,000 full time jobs in the DRC, Randgold said.

In early February, Randgold warned the African mining industry will be destroyed by unreasonable demands made by governments of African countries, in response to the new mining laws in the Democratic Republic of Congo.

Randgold's Chief Executive Mark Bristow at the time described the laws as "draconian". They will raise royalties on base metals such as copper and cobalt to 3.5% from 2.0% and imposes a 5% royalty on certain strategic metals.

They will also impose a 50% tax on 'super' profits, which is income realised when commodity prices rise 25% above levels included in a mining project's bankable-feasibility study.

The new code was passed in late January by both houses of the DRC's parliament.

Randgold Resources operates the Kibali gold mine in the central African country, a joint venture between Randgold, AngloGold Ashanti PLC and the Congolese parastatal SOKIMO.

Randgold shares were down 1.3% on Thursday at 6,012.00 pence each.