[miningmx.com] – RANDGOLD Resources CEO, Mark Bristow, said he was “heartened” by prime minister Augustin Matata Ponyo’s interest in re-negotiating draft changes to the Democratic Republic of Congo’s (DRC’s) mining code, the details of which were recently submitted to the country’s parliament.
In its submission, the DRC ignored industry claims that the draft code changes were anti-investment. The changes recommend an increase in royalties on copper and cobalt revenue to 3.5% from 2% and on gold and other precious metals to 3.5% from 2.5%. The royalty on diamonds and other gems will increase to six percent from four percent.
“We were surprised and disappointed when the ministry of mines presented a draft code to parliament without taking the industry’s comments on board and which departed radically from the common ground we thought had been established,” said Bristow.
“As the DRC chamber of mines warned at the time, enactment of the code in this investment-hostile form will have a catastrophic effect not only on the mining sector but on the Congolese economy generally,” he said.
“It was therefore very heartening to learn from the prime minister that the government has recommitted itself to negotiation,’ Bristow said.
