Zurück
30 Mar 2015, 4.16 pm GMT Johannesburg, 30 March (Argus) — Mining legislation is under the spotlight in three of Africa's most important resource-rich economies, with governments and investors looking to find a balance that will meet the needs of both agendas. Zambia is reassessing its recent controversial trebling of royalties for open-pit mining; the Democratic Republic of Congo (DRC) is revamping its mining code in a way that could affect foreign investors; and South Africa's mining minister is preparing to disclose the government's review of the country's mining charter between 2004 and 2014. While Zambia's new leader, President Edgar Lungu, has directed his finance and mining ministers to change the country's new mining royalty system by 8 April, the neighbouring DRC government is looking to increase its share of Africa's mining industry. Following objections from producers, who were baulking at open-pit royalties rising to 20pc from 6pc, the new Zambian president appears to be searching for middle ground, and has stated that the country may revert to its 2014 mining legislation as an interim measure. The new taxation regime, which came into effect from 1 January, eliminates corporate income tax but imposes a 20pc gross royalty on revenue regardless of profitability. The move to amend the system has been welcomed by foreign investors, such as Barrick Gold, which has said it may no longer close its Lumwana copper and cobalt mine. Barrick announced in December that it would suspend operations at the mine in the second quarter in response to the legislation. In the DRC, Africa's largest copper and cobalt producer, the relationship between foreign investors and the government appears to be heading towards an impasse, possibly unravelling strong growth in the country's mining sector. The country's Chamber of Mines last week warned that a proposed new mining code would make it unviable for foreign investors to earn a reasonable return. It said the new code could see the DRC government earning up to 80pc of mining project cash flow, leaving companies with just 20pc. The chamber has urged the government to resume consultation with the mining industry to maintain an environment that will continue to attract investment. In South Africa, the government is due to present its review of how much the local mining industry has transformed over the past decade. One of the main requirements of the mining charter is for all mining operations to be at least 26pc owned by black investors. Other key elements of the charter are social and labour plans, training programmes, procurement and the composition of boards and management. If there are elements of the review that do not meet the government's requirements or expectations, there is a possibility that more stringent measures could be introduced to speed up transformation in the industry. am/jc
www.argusmedia.com/News/Article?id=1015421
