Just over a year since its implementation and adoption, the Revised Mining Code in DRC has brought with it positive changes to corporate social responsibility, environmental protection, transparency and ensured better controlled legal and fiscal frameworks.
A bone of contention for the mining sector remains the new tax measures that were introduced, says PwC assurance and advisory partner for Francophone Africa JEAN JACQUES MUKULA.
“Some measures, such as capital gains tax, still remain unclear, with mining players expecting clarifications or additional guidance from the DRC authorities, Mukula notes.
As a result, PwC – who has been present in the Democratic Republic of Congo (DRC) for nearly 45 years – has been assisting clients in analysing the tax implications of the Revised Mining Code on their specific operations.
Moreover, a decree by the government just after the implementation of the Mining Code that declared cobalt and coltan strategic minerals – nearly tripling the royalty rate miners will pay to 10% – has been met with opposition by existing DRC mining companies.
They believed they were protected from the royalty by the grandfathering clause under the 2002 code, which would have protected them against fiscal modifications until 2028.
Until now, it seems that none of the mining companies that have lobbied against the implementation of the Revised Mining Code have decided to challenge the code through international arbitration.