DRC Calls on International Miners to Implement New Mining Code

- September 12th, 2018

Mines Minister Martin Kabwelulu says industry leaders need to work to implement the code, which has been fiercely opposed by international miners.

The Democratic Republic of Congo’s (DRC) new mining code, which has been fiercely opposed by international miners, cannot be called into question, the country’s mines minister said on Wednesday (September 12).

Speaking at a mining conference in Kolwezi, Martin Kabwelulu said industry leaders need to work to implement the code as it was promulgated by President Joseph Kabila.

“It is not the place of any participating party, whether civil society, mining companies or even the government to try to call into question the text governing the mining sector,” Kabwelulu added.

Cobalt Stocks Have Grown 100% in the Past Year


Get insights into cobalt's future in our free report


The new mining code was signed by Kabila on March 9, despite opposition from international miners.

The legislation removed a measure protecting licence holders from complying with any rule changes for 10 years. It also hiked royalties on minerals across the board and added a 50-percent super profits tax.

The DRC is the world’s top producer of cobalt, a key element in lithium-ion batteries used to power electric cars. The country is also Africa’s top copper producer.

According to Reuters, Kabila addressed the conference later urging all parties to implement the new code and called on mining companies to explore beyond their existing concessions.

“I call on investors to move beyond the comfort of the land and concessions that were ceded to them by different state companies … to take real risks by exploiting the rest of the country,” Kabila said.

In August, international miners with assets in the DRC established a new industry body to engage the government on their concerns about the mining sector.

Battery Metals in 2018


Click to download your free report


The Mining Promotion Initiative was launched by mining companies including top cobalt producer Glencore (LSE:GLEN), Ivanhoe Mines (TSX:IVN) and MMG (HKEX:1208). The miners represented by the organization account for 80 percent of copper and cobalt production in the country.

According to analysts, consumers could be the most impacted by the new code, as it is likely the changes could lead to higher costs for the battery metal. Cobalt metal prices on the London Metal Exchange are currently sitting at US$61,250 per tonne.

Looking ahead, Kabila said the DRC also plans to establish special economic zones for companies that manufacture goods from the country’s minerals.

“There is a need to create special economic zones for the final users of Congolese natural resources,” Kabila said. The area will allow producers of electric vehicles, smartphones and other goods to “install themselves in the DRC,” he added.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Cobalt Stocks Have Grown 100% in the Past Year


Get insights into cobalt's future in our free report


Get the latest Cobalt Investing stock information

Get the latest information about companies associated with Cobalt Investing Delivered directly to your inbox.

Cobalt Investing

Select All
Select None

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time

One response to “DRC Calls on International Miners to Implement New Mining Code

Leave a Reply

Your email address will not be published. Required fields are marked *