Congo to re-evaluate new mining code next week
Democratic Republic of Congo’s legislators are set to review next week a long-delayed revision to the mining code, which is said to be crucial for the country, as the nation needs the higher revenues a revised legislation would generate.
The country’s government abandoned plans to change the mining code in February last year, on fears the move would have driven away investors at a time of historically low commodity prices and energy shortages that were hurting output in the country.
Government halted plans to change the mining code last year due to low commodity prices and fears the move would have driven away investors.
But Mines Minister Martin Kabwelulu told Reuters Friday the government was ready to re-introduce the project in parliament, though he didn’t say whether it would be identical to the earlier proposal to replace the current code, which was passed in 2002.
Top mining companies including Glencore (LON:GLEN), Randgold Resources (LON:RRS) and China Molybdenum (HKG:3993) currently operate in the DRC, which is Africa’s top copper producer and the world’s largest source of cobalt.
Through the chamber of mines, an industry lobby group, companies have opposed to the approval of a new code, saying that while it would boost government revenues, it would also make investments in the sector unprofitable.
Activists, however, dismiss those claims and argue higher revenues are crucial to supporting public services.
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3 Comments
Extermy
If only the government would use the additional funding to support public services and not their own personal self enrichment schemes as this is the norm in the DRC. It has nothing to do with the people, but everything for corrupt government officials. They open up elaborate accounts offshore and transfer vast amounts lining their pockets with the people’s money
Zulugroove
How much cash are we talking about here ? And what are the annual costs of running this government ? What is the shortfall ? And what is the funding gap?
It would be nice to talk in SPECIFICS !! As apposed to generalistic terms , all I got from this article was a nasty gut feeling in my stomach about a government only looking after themselves , and not answering any of the questions above !
Not helpfull much aside from making me feel uneasy !
More details please !!!
Eric Villepreux
Let’s talk about enhancement of GDP per capita and take three close African countries in mining:
In 1970, the respective GDP/capita of DR Congo was about $100, same for Botswana and about $800 for Namibia.
in 2010, 40 years after, DRC $200, Botswana $7000, Namibia $5500.
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