BUKAVU, Democratic Republic of Congo, Oct 30 (Reuters) –
D emocratic Republic of Congo will seek to raise its stake in new
mining projects to 35 percent from the current five percent in a
revised mining code, the country’s top mining official said on
Tuesday.
Congo is among a slew of minerals-rich countries across
Africa seeking to raise state shares in lucrative resource
contracts, in a trend that could deter international investors.
“We’ve proposed (a government stake) of 35 percent when an
exploration permit is transformed into an exploitation permit.
It is currently 5 percent,” Mines Minister Martin Kabwelulu told
Reuters by text message.
Congo – which holds rich deposits of copper, tin, cobalt and
gold – is reviewing its ten year old mining laws after the
government said it wanted to increase receipts from the sector.
The new law is expected early next year.
Kabwelulu said the revisions could also include a proposal
to boost royalties on some minerals and would be submitted to
industry players for feedback.
Companies in Congo have expressed concern that proposed
changes to increase the state’s receipts would discourage
investment in the country, which is already plagued by rebel
movements, political turmoil, and crumbling infrastructure.
State-run mining company Gecamines is also seeking to fund a
near $1-billion expansion, in part by auditing its joint-venture
partners – a move that could cause tension with partners such as
Freeport McMoRan and Glencore-owned Katanga
Mining.
Other miners in Congo include Randgold Resources, and
AngloGold Ashanti
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