Randgold could lose $10m a year under proposed Congo mining code
CAPE TOWN – Randgold Resources could lose $10-million per year if a proposed change in the Democratic Republic of Congo is signed into law, Chief Executive Mark Bristow said.
"At the top end it would be $10-million a year," Bristow told Reuters, referring to the financial impact of the new law.
"Which is not of significance to a Kibali-style investment, but if you were a small company delivering a small deposit you would be under huge pressure."
London-listed Randgold operates the Kibali gold mine in north eastern DRC and represents just under 30% of its total group gold production.
The new code, which parliament approved late last month, could see royalties on cobalt, a vital component in electric car batteries, increase five-fold to 10%. It also removes a stability clause in the current law protecting miners from changes to the fiscal and customs regime for ten years.
Congo mines minister Martin Kabwelulu declined to say on Wednesday whether the mining code had been signed into law by President Joseph Kabila.
Bristow said the company was paying 4.5% royalty "under duress" as opposed to 2.5% required by the mining code of 2002.
This week global mining companies including Randgold, Ivanhoe and Glencore mounted a coordinated campaign against a new mining code they say will stifle investment.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
