MINING companies including Glencore, Randgold Resources, and AngloGold Ashanti failed to persuade the Democratic Republic of Congo (DRC) to alter proposed changes to its new Mining Code, said Reuters.
Citing Anita Lwamba, legal counsel for the DRC prime minister, Bruno Tshibala, Reuters said the regulations for the Mining Code were signed into law overnight (June 9/10]. “The decree fully implements the mining code promulgated by the President [Joseph Kabila] in March,” said Lwamba.
Enacting the code is likely to trigger a legal battle between the DRC and major mining companies which claim the tax hikes and the removal of exemptions for pre-existing operations are a breach of their agreements with the government, said Reuters.
The new code, signed by President Joseph Kabila in March, axes 10-year protections for existing projects against changes to the fiscal regime, imposes a windfall profits tax and raises royalties, it said.
