* Government wants 35 pct of mine projects, up from 5 pct
* Also plans to increase royalties
* Country has rich deposits of copper, tin, cobalt and gold
By Jonny Hogg
BUKAVU, Democratic Republic of Congo, Nov 1 (Reuters) –
D emocratic Republic of Congo’s planned overhaul of mining laws,
to give the state higher royalties and a bigger stake in
projects, will not affect existing contracts, its mines minister
said.
The central African country is seeking to enlarge its stake
in mining projects to 35 percent from 5 percent and increase
royalties to gain greater state revenues from the sector, a move
that has rattled firms active in the country.
“None of the proposed revisions would be applied
retroactively,” Mines Minister Martin Kabwelulu said in a text
message to Reuters on Thursday.
Congo holds rich deposits of copper, tin, cobalt and gold
and is among a number of developing countries trying to increase
revenue from their mineral wealth by boosting taxes and the
state’s share in profits.
A draft of the proposed changes in the mining law seen by
Reuters on Thursday shows Congo is seeking a 35 percent stake in
projects that is “free of charges and (…) non-dilutable.” It
also includes a proposal to double royalties on some minerals
and introduces a 50 percent levy on miners’ “super profits”.
Continued…
