DRC: DRC Will Learn from Zambia Tax U-turn

Mar 26, 2015 | David McKay, Miningmx
View Original

Commenting on a review of the DRC's mining code, which includes increases in the tax burden, Jacobs said: "I think what happened in Zambia this year has helped the DRC government. Now we see the effect of changing the tax burden; capital can disappear overnight". Edgar Lungu, Zambia president, asked his government on March 25 to change a new tax system, in which royalties on some mines had been tripled to 20%. The increase in royalties had been heavily criticised by executives of companies operating in Zambia, and by analysts. In December, Barrick Gold Corp. threatened to shut its Lumwana copper/gold mine while Toronto's First Quantum Minerals said it would not proceed with up to $1bn in new investment at its Kansanshi mine.