Congo Said to Plan Boosting Mine Royalties, Increase Profit Tax and Stakes

Mining and Exploration
15/04/2015 09:16

The Democratic Republic of Congo plans to increase mining royalties and raise its stake in future projects according to a revised mining code. This will raise the royalty on diamonds and other gems to 6 percent from 4 percent. Royalties on copper and cobalt revenue will increase to 3.5% from 2 % and on gold and other precious metals to 3.5% from 2.5%. According to the code, the government’s free share of new mining projects will increase to 10% from 5%, while profit tax jumps to 35% from the current 30%.

Miners say the changes will hamper investment and have worked to delay the code revisions for almost three years. "The growth of the mining sector, both industrial and artisanal, which should bring the state substantial revenue for economic and social development, has not fulfilled numerous expectations,” the government said in a statement.