Randgold Resources To Meet Congo Government Next Week Over Mining Laws

8th Mar 2018 08:19

LONDON (Alliance News) - Randgold Resources Ltd said Thursday it is to begin discussions with the government of the Democratic Republic of Congo next week, after mining industry representatives met authorities to discuss the country's controversial new mining code.

Randgold said the meeting was to "clarify" aspects of the new mining code, with President Joseph Kabange assuring questions raised would be resolved through dialogue with the government.

The FTSE 100-listed miner described the discussions as "constructive".

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% 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 country. The mine is a joint venture between Randgold, AngloGold Ashanti PLC and the Congolese parastatal SOKIMO. In 2017, the Kibali mine made a profit of USD129.5 million, versus USD130.9 million a year ago.

Randgold shares were down 1.0% on Thursday morning at 5,922.00 pence each,

---

Related Shares:

Randgold ResourcesGOLD.L