After six months of lobbying, companies including Glencore and Randgold Resources have got nowhere in their battle to push back against a new mining law that voids existing agreements and increases their costs.
Ivanhoe Mines Mining News
CITIC Metal will own 20% of the Canadian miner, which makes its biggest shareholder.
Congo's prime minister wants to immediately implement the new mining code without any concessions to industry demands that key provisions be amended.
They said they expected authorities to realize the sliding scale they propose would be a more effective mechanism for the government to share in higher commodity prices than the windfall tax and strategic minerals scheme included in the new code.
The proposal, signed by companies responsible for 85% of the DRC's copper, cobalt and gold output, suggest that sliding royalties will give the government a higher share of revenues.
A new mining code in the cobalt-rich Congo will lead to higher costs for consumers of the battery metal at a time automakers are expanding production of electric vehicles, experts say.
Robert Friedland, founder and executive chairman of Ivanhoe Mines, said he would be happy to pay higher taxes if there is stability in Congo's rules and transparency in the accounting of those royalties.
Some of the company’s international mining partners include major names such as Glencore, China Molybdenum and Ivanhoe.
DRC stuns miners with immediate lifting of 10-year exemption for licensees, 50% tax on 'super-profits' and code permitting 5-fold increase in cobalt royalty.
Vancouver-based company headed by billionaire mining financier Robert Friedland loses 11% of its value after DRC stuns with new mining code.
The engine that drives his confidence comes in the form of electric vehicles.
The nation, responsible for about two thirds of global output, plans to increase tax on cobalt to 5% from 2%.
The World Bank-supported mining legislation was introduced to attract investment into copper and cobalt projects from global miners including Glencore Plc, Freeport-McMoRan Inc. and China Molybdenum Co. Gécamines claims country has not benefited from it.
But ex-Sprott, Ivanhoe, Novagold board member stands by comments: “If stating some historical facts makes me a racist, then I suppose that I am a racist.”
New controls aims at holding the company's partners, including Glencore, China Molybdenum and Ivanhoe, accountable in copper and cobalt projects
Ivanhoe boss transforms what could have been a set of exciting drill results into 43 holes of “global significance in the copper world”.
Judge revoked an interim order that prevented the company from relocating graves present at its Platreef platinum group metals mine, in Limpopo Province.
INTERACTIVE MAP: Together reserves at the global top 10 copper mining projects are worth more than $360 billion.
"We are working hard to have the mine ready to restart production": Robert Friedland
The Canadian miner strongly refutes accusations of human rights abuses and illegal operations at its South African project made by the NGO.
A principal goal of the five-year partnership, which is renewable for a further five years, is to develop and equip the University of Limpopo’s geology department to become a centre of excellence in geosciences.
The deal increases Chinese miners presence in Congo, which is Africa’s top copper producer and the world’s largest producer of cobalt.
The Chinese firm already mines gold next door to a Phoenix deposit.
It also plans to review the legal status of the joint venture, while it negotiates with Ivanhoe to raise its stake to 20% from the current 5% it holds.
Perhaps the most important aspect of today’s agreements is the fact that both aim to form long-term strategic partnerships to collaborate on further ventures, opening new markets for all the firms involved.