DRC president vows ‘constructive dialogue’ over mining levy

KINSHASA- Democratic Republic of Congo President Joseph Kabila has promised┬áto have “constructive dialogue” with mining companies who are worried over plans to hike taxes on so-called strategic metals.

The strategic metals are expected to include the increasing market of cobalt and copper.

Kabila on Tuesday held more than seven hours of talks with leading role players in the Democratic Republic of Congo’s mining sector over plans to change the country’s 2002 mining code.

Kabila office said in a statement late on Wednesday, “The president reassures mining operators that they are economic partners in the DRC and that their concerns will be taken into account through a constructive dialgoue with the government after the new mining law is approved, with a view to finding compromise.”

The meetings on Tuesday the mining firms and the president agreed to deal with issues “case-by case” officials said.

Mining Minister Martin Kabwelulu said there would be “implementation measures” that would “ease the toughness of the law.”

He added that mining executives were apprehensive at first but they left “calm”.

There will be a tax of 50% on windfall profits, known as super-profits that occur when prices are priced at least 25% above a given average.

The draft bill wants 10%┬átax on “strategic metals” as the current rate is only 2% and the current draft bill would also scrap a clause in the 2002 code that gives a 10-year guarantee of no change to the terms of mining contracts.

Photo Credit-New Visison

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