SMM8, 24 Feb: mining companies operating in the Democratic Republic of the Congo have set up a new body, MP (Mining Promotion Initiative), to oppose a new mining law previously promulgated by the government. The aim of the organization is to engage more with the Government and reflect to it their concerns about the impact of the new mining law on local industry. The group is large, representing 80 per cent of Congo's overseas copper and cobalt producers, as well as 90 per cent of gold producers. The organization includes Rand Gold, Glencore, Ivanhoe Mining, Zijin Mining Group, MMG, guaranteed positions, China Molybdenum Industry Co., Ltd. The new regulations in the Democratic Republic of the Congo were formally signed into law by President Kabiyra in June this year. Congolese mining companies have previously expressed strong opposition to the new law, but the government has not made concessions.
Richard Robinson (Richard Robinson), secretary general of the MPI, said the main concerns of MPI members were the implementation and application of the new mining law.
Congolese mining companies believe that if the Government fails to address some of the key issues in the new mining law, it will hinder further investment in the country's large and small sustainable mining projects, which are vital to the country's economy.
However, experts believe that the impact of the new mining law on cobalt mining investment and production enterprises will not be significant, as the Democratic Republic of the Congo supplies more than 60% of the global demand for cobalt, large-scale reserves can still make investment in cobalt mines in the Congo attractive.
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