Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute

[franco + 96]

International mining companies including Glencore, Randgold and Ivanhoe Mines quit the Democratic Republic of Congo’s chamber of commerce, saying the industry body no longer represents their interests after the introduction of the country's new mining law. The miners oppose the law passed by parliament in January that raises royalties on minerals and removes a clause that protected miners from changes to the fiscal and customs regime for 10 years. At least five mines, which produce more than 85% of Congo’s copper, cobalt and gold production, reportedly resigned from the industry group.

[Pavel + 384]

The "rebellion" will not last long: minerals, gold, copper, diamonds are waiting ...

[Marina Schwarz + 1,576]

How important is this Chamber of Commerce in reality? If they quit the mines, that would be different but just quitting a Chamber? How significant is this?

[Douglasp + 1]

I would say not too much, at first instant, it is a way of showing discontent with the Chamber at not defending the economic equilibrium of the miners investment and indeed at government legislation. Key points to look at will be the contract clauses on stabilisation and any arbitration associated with breaches of those clauses, I suspect there is something missing in the contractual details.

 

[Pavel + 384]

6 hours ago, Douglasp said:

I would say not too much, at first instant, it is a way of showing discontent with the Chamber at not defending the economic equilibrium of the miners investment and indeed at government legislation. Key points to look at will be the contract clauses on stabilisation and any arbitration associated with breaches of those clauses, I suspect there is something missing in the contractual details.

 

Congo govt. last week says prepared for open negotiations with miners to find compromise on implementing new code? Seven days after this statement, the result is broken Chambers Union  All majors in the mining industry are pushing to get their contracts signed....  

[franco + 96]

 

9 minutes ago, Pavel said:

Congo govt. last week says prepared for open negotiations with miners to find compromise on implementing new code? Seven days after this statement, the result is broken Chambers Union  All majors in the mining industry are pushing to get their contracts signed....  

It looks like a blackmail of the President of the Congo. President Kabila is set to approve controversial law changes in mining sector. The changes will raise taxes and other costs for operators in Congo, which is Africa’s top copper producer and the world’s main source of cobalt, a critical ingredient in rechargeable batteries. Companies including Glencore, the world’s largest cobalt producer, and Ivanhoe Mines Ltd., which has discovered Africa’s biggest copper deposit in Congo, face a 50 percent tax on some profits and increased royalty payments under the new law. It also allows the government to raise royalty payments on cobalt five-fold to 10 percent if it categorizes the mineral as a “strategic substance.”