Reuters: Regulatory News: UPDATE 1-DR Congo says seeks bigger stake in mine projects

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UPDATE 1-DR Congo says seeks bigger stake in mine projects Oct 30th 2012, 16:18 Tue Oct 30, 2012 12:18pm EDT BUKAVU, Democratic Republic of Congo, Oct 30 (Reuters) - D emocratic Republic of Congo will seek to raise its stake in new mining projects to 35 percent from the current five percent in a revised mining code, the country's top mining official said on Tuesday. Congo is among a slew of minerals-rich countries across Africa seeking to raise state shares in lucrative resource contracts, in a trend that could deter international investors. "We've proposed (a government stake) of 35 percent when an exploration permit is transformed into an exploitation permit. It is currently 5 percent," Mines Minister Martin Kabwelulu told Reuters by text message. Congo - which holds rich deposits of copper, tin, cobalt and gold - is reviewing its ten year old mining laws after the government said it wanted to increase receipts from the sector. The new law is expected early next year. Kabwelulu said the revisions could also include a proposal to boost royalties on some minerals and would be submitted to industry players for feedback. Companies in Congo have expressed concern that proposed changes to increase the state's receipts would discourage investment in the country, which is already plagued by rebel movements, political turmoil, and crumbling infrastructure. State-run mining company Gecamines is also seeking to fund a near $1-billion expansion, in part by auditing its joint-venture partners - a move that could cause tension with partners such as Freeport McMoRan and Glencore-owned Katanga Mining. Other miners in Congo include Randgold Resources, and AngloGold Ashanti Link this Share this Digg this Email Reprints

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