Miners Continue To Express Concern Over New Mining Code In Congo

LONDON (Alliance News) - FTSE 100-listed gold miner Randgold Resources Ltd said on Monday that it, along with other miners in the Democratic Republic of Congo hope that issues concerning the implementation of a new mining code are addressed.

Among the miners concerned are peer Glencore PLC, Johannesburg-listed AngloGold Ashanti Ltd, Ivanhoe Mines and Crystal River Global Ltd, Zijin Mining Group, MMG Ltd and China Molybdenum Co Ltd.

At the end of March, mining industry representatives submitted a formal proposal to the DRC Ministry of Mines to address concerns about the new code, particularly about the stability clauses which includes taxation, customs and exchange control.

The representatives made a proposal to include provisions for the preservation of mining agreements entered into by the government while having a sliding scale on royalties for copper, cobalt and gold, which is believed to form a more effective mechanism for higher commodity prices despite the windfall tax and strategic minerals in the new code.

"While the Ministry of Mines has not yet formally responded to the industry's proposal, the engagement through the working groups set up to draft the regulations to implement the law and the all-important Civil Society leadership along with other industry and government counterparts has been constructive. The industry believes a way forward could be found which would be in the best interests of all parties," the statement from the miners said.

Shares in Rangold Resources were down 0.1% at 5,736.00 pence on Monday. Glencore's London shares were up 0.5% at 382.40 pence while Johannesburg shares were up 1.6% at ZAR65.49. AngloGold Ashanti shares were up 1.2% at ZAR111.27.

Glencore