Plans by Democratic Republic of Congo to change the nation’s mining code may reduce the flow of foreign direct investment, Randgold Resources Ltd. (RRS) Chief Executive Officer Mark Bristow said. A draft of the proposals shows the government is seeking to raise taxes and royalties from miners, cut exemptions and institute a windfall-profit tax. Congo last year surpassed Zambia as Africa’s biggest copper producer, according to CRU Group, a London-based commodities analysis company. “Like all countries, they want to get more,” Bristow said in a May 1 interview at Kibali, a Randgold mine that’s a joint venture with AngloGold Ashanti Ltd. (ANG) “The big problem in the Congo is that a lot of the mining industry doesn’t actually operate under the code so even if you change the code you don’t benefit the Treasury.” Congo was the world’s eighth-largest producer of copper and the biggest miner of cobalt last year, according to the U.S. Geological Survey. It also holds gold, diamonds and tin. bloomberg/news/2014-05-05/randgold-ceo-says-congo-mine-code-change-may-reduce-investment.html?
Posted on: Tue, 06 May 2014 12:27:15 +0000
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