PROMULGATION OF NEW MINING CODE IN THE DEMOCRATIC REPUBLIC OF CONGO
By Fulgence KALEMA
Managing Partner
On the 9 March 2018, the President of the DRC has finally signed a controversial new mining code into law despite the intervention of mining companies including Glencore, Randgold Resources , China Molybdenum and Ivanhoe Mines.
This new law was voted by the National Assembly on 8 December 2017 and by the Senate on 22 January 2018.
The New Mining Code which is a revision of the law No 007/2002 of July 11, 2002, could see royalties rise taxes for minerals deemed ‘’strategic’’ by the government.
It also reduces immediately stability clause in current law protecting mining operators from changes to the fiscal and customs regime for 10 years.
The Code has been vigorously opposed by the mining companies.
For the mining companies, the changes in the new Code would scare off new investments and violate existing agreements.
A the end of their meeting, the President of Republic assured the mining operators that their concerns will be taken into account through a constructive dialogue with the government after the promulgation of the new mining law.