Randgold Resources, Glencore And Other Miners Submit DRC Proposal

29th Mar 2018 14:34

LONDON (Alliance News) - Randgold Resources Ltd, as part of a joint press release on Thursday, said mining industry representatives in the Democratic Republic of Congo have submitted a formal proposal to the government relating to its revised mining code.

Thursday's statement was issued on behalf of members of the DRC mining industry, representing more than 85% of the DRC's copper, cobalt and gold production, including: Randgold Resources, Glencore PLC, Ivanhoe Mines, Gold Mountain International/Zijin Mining Group, MMG Ltd, Crystal River Global Ltd and China Molybdenum Co Ltd, and AngloGold Ashanti.

The proposal links a sliding scale of royalty rates to the prices of the key commodities, "which industry representatives believe would be a more effective mechanism than the windfall tax introduced in the new code".

At current prices, this proposal would immediately give the government a higher share of revenue than provided in the new code. The proposal also deals with stability arrangements, state guarantees, and mining conventions.

"Along with the stability afforded to convention holders, enshrined in the 2002 mining code is a 10 year stability clause which provides that the holders of mining and exploration titles will continue to be governed by the terms of the 2002 mining code for such period in the event of the implementation of any new law," the mining industry statement said.

The proposal accepts 76% of the articles in the 2018 code and suggests changes to the rest "only to ensure the effectiveness and legality of the code".

"The mining industry representatives believe these changes will resolve issues with the code and contractual relationships while giving the DRC and its people increased participation in the proceeds of mining," the mining industry members said.

Shares in Randgold were up 0.7% at 5,870.00 pence, while Glencore was up 1.0% at 356.60p on Thursday.