Plans by Democratic Republic of Congo to raise its stake in new mining projects to 35% from 5% under a revised mining code have unnerved investors, Reuters reported. DR 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. “We’ve proposed a government stake of 35% when an exploration permit is transformed into an exploitation permit. It is currently 5%,” Mines Minister Martin Kabwelulu told Reuters on Tuesday.
Copper and gold companies – which account for the bulk of planned investment in DRC mines – have immediately pointed out that the proposed change could have an adverse effect on their plans, especially where companies need to make substantial investments in power and transport infrastructure. Several international companies, including Malaysia Smelting Corporation, have been considering industrial-scale tin mining projects in the country, although current production is almost entirely from artisanal operations. ITRI estimates that DRC production of tin-in-concentrate was some 5,000 tonnes in 2011, down from a peak of 14,000 tonnes in 2008.
