After meeting with Democratic Republic of the Congo President Joseph Kabila, miners operating in the country expressed hope that the government may regulate away some problems they have with a proposed mining code that hikes royalties on metals, Reuters reported March 7.
Standing next to DRC Minister of Mines Martin Kabwelulu, Ivanhoe Mines Ltd. Executive Chairman Robert Friedland read a joint statement from mining executives who held a meeting with Kabila the same day.
"The president gave assurances that the questions raised will be resolved through discussions with the government in the mining regulations adopted by the government," Friedland said. Ivanhoe posted a link to a YouTube video of the press conference in a March 8 release.
Executives from Ivanhoe, China Molybdenum Co. Ltd., Glencore Plc, Randgold Resources Ltd., MMG Ltd. and Zijin Mining Group Co. Ltd. were at the meeting, according to Ivanhoe.
Miners have voiced opposition to the new mining code, saying it will cut too deeply into profits and hurt mining investment in the DRC. The code has not been signed into law by Kabila, but it has passed through both houses of the DRC's Parliament.
The law proposes to hike royalties on a slew of metals to 3.5% and end a 10-year stability clause. It allows a higher royalty on strategic metals such as cobalt and introduces a super-profit tax.
Kabwelulu, speaking after Friedland, echoed the possibility that regulations may address "specific" problems miners have with the mining code. But it remains unclear what those concessions may be, if any are made.
Kabwelulu said government and mining experts would study issues brought to them after the law goes into effect.
"The code is a law," Kabwelulu said in the video. "It's a law that will be helped in the application of mining regulations." But he added moments later that the law could not be contradicted by regulations.
A spokesperson for Ivanhoe could not be reached for comment.
The company has a 39.6% interest in the feasibility-stage Kamoa-Kakula copper property in the DRC, where indicated resources hosted by the Kakula deposit recently increased by 50%.
