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DRC out of the blue

Democratic Republic of Con- alongside copper, of which
go is considering more than
doubling royalties on cobalt, a DRC is Africa’s leading pro-
key ingredient in lithium-ion
batteries, under a new mining ducer. The royalty on base
code nearing parliamentary ap-
proval, Mines Minister Martin metals would increase to
Kabwelulu said.
3.5% under the revised code.
Nearly two-thirds of the
world’s cobalt comes from Mining companies op-
DRC. Demand for the metal
has surged due to expected erating in DRC, including
growth in the electric vehicle
sector, causing the price on Glencore and Randgold Re-
the LME to triple over the last
two years. sources Ltd, argue that the

A proposed revision to DRC’s proposed code, which would
2002 mining code, which was
approved by parliament’s lower also increase certain taxes
house late in 2017 and is now
being considered by the upper cham- and the State’s share in new
ber, would increase royalties across the
board and impose a 5% royalty on “stra- projects, would make invest-
tegic metals”.
ments in the sector unprofit-
Kabwelulu told Reuters in a text mes-
sage that the Government would con- able.

But the Government says

the proposed rates are lower

than in competitor nations
DRC is considering doubling royalties on cobalt such as neighbouring Zam-

bia and that the measure is

sider designating cobalt a strategic metal essential to boosting meagre public rev-

once the law had passed. He did not re- enues.

ply to a follow-up question asking how – Aaron Ross, Reuters
that determination would be made.

Under the existing code, cobalt is

charged a 2% royalty as a base metal

YTGOOEUDTRASY 7

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AUSTRALIA’S PAYDIRT FEBRUARY 2018 PAGE 19