August 22, 2017

DRC’s copper miners pay 35% less royalties in first half of 2016

As was widely expected, there has been a reduction in royalties from Democratic Republic of Congo (DRC) copper mining sector to the government.

According to Reuters, quoting a report by the a local division of mines, copper mining companies located in the country’s southeastern, which is the heartland of Industrial copper and cobalt production, paid 35% less the amount of royalties ($45.8-million) compared to the same period in 2015 ($70.8-million).

The drop is consistent with information from the DRC’s Central Bank, which indicate that the average drop in copper and cobalt output in the same period under review was 20%. A similar trend can be noticed in other mineral types.

Persistently low demand from China, which until the recent bust, bought minerals with giddy abandon has had an impact on the DRC’s economic performance. This has been reflected in depreciation of the local currency, the Franc.

 

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