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April 9, 2014

DRC Seeking to Raise Cobalt Export Tax to 4 Percent

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ResourceInvestingNews.com - April 9, 2014, 2014

DRC Seeking to Raise Cobalt Export Tax to 4 Percent

Reuters reported yesterday that the Democratic Republic of the Congo (DRC) is looking to double its cobalt export royalty from 2 to 4 percent.

Some, such as Pieter Deboutte, who manages the company that holds Israeli billionaire Dan Gertler’s mining and oil interests in the country, believe the move could make companies less eager to do business in the DRC.

As quoted in the market news:

Notes from talks with mining investors, seen by Reuters, show Congo is seeking to raise royalties on copper and cobalt from 2 to 4 percent, and gold from 2.5 to 3.5 percent.

The government is keen to tap new revenue streams, partly to help pay for elections in 2016 when President Joseph Kabila is scheduled to step down. Deboutte, however, said the government should be patient as tax revenues were poised to jump in any case over the next three years due to rising production.

Click here to read the full Reuters report.

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