Robert Friedland, executive chairman of Ivanhoe Mines Ltd., has joined the growing number of industry executives voicing opposition to the proposed new mining code in the Democratic Republic of the Congo.
"The mining industry is sick and tired of being gored," Friedland told attendees at the Mining Indaba in Cape Town, South Africa.
Friedland said he was not necessarily unwilling to pay higher royalties and taxes but said the funds should be used to support and empower local communities. At the same time, he said there must be a stable environment for investors.
"I am not concerned about the level of taxation, that's not the fundamental issue. The issue is, the mining industry needs stability, and we absolutely need transparency," he said. "I want the accounting of that money to be transparent and absolutely help people around the mines."
Randgold Resources Ltd. CEO Mark Bristow spoke out earlier against the proposed changes and expressed his disappointment that proposals and comments by miners had not been taken into account.
Under the new code, royalties on copper, cobalt and gold will rise. In particular, a proposal to revoke a 10-year stability clause has prompted criticism among miners, as it brings legal uncertainty for investors.
The draft code was approved by the country's National Assembly and Senate but still requires final sign-off by President Joseph Kabila to come into force.
Simon Tuma-Waku, president of the DRC's Chamber of Mines, told S&P Global Market Intelligence on Feb. 6 that this could happen within the next two days.
Friedland said he had joined forces with Bristow, Glencore Plc CEO Ivan Glasenberg and China Molybdenum Co. Ltd. — all of whom run operations in the DRC — to establish new discussions with policymakers to reach a sustainable long-term solution for taxes and royalties in the country.
"I express the faith that ... we are getting there; we will find a way," he said, adding that a meeting with DRC's mining minister, Martin Kabwelulu, had been positive. "I am highly confident there will be a dialogue and ... we will reach a sustainable and mutually beneficial, long-term solution."
