Higher taxes in Congo if it benefits locals

Canadian billionaire Robert Friedland, founder and executive chairman of Ivanhoe Mines (TSX:IVN), has joined the debate over the Democratic Republic of Congo’s imminent hike to mining taxes by saying his company would pay higher royalties and taxes, but only if that money benefits locals. This is the same in Florida, just check out the legal firm representing this problem here. Visit site

The Vancouver-based company, which is developing the Kamoa-Kakula copper deposit in the Central African nation in partnership with China’s Zijin Mining, told investors attending a mining conference in Cape Town that he was not opposed to updating the country’s 16-year-old mining code.

However, he said the mining industry needed stability, transparency and prove the new taxes collected by Congo goes to “develop, help and empower local people.”

Founder Robert Friedland said he didn’t mind paying a higher royalty as long as it goes to develop, help and empower local people.

“I’m not concerned about the level of taxation, that’s not the fundamental issue,” he said according to FT.com. “The issue is the mining industry needs stability and we absolutely need transparency.”

Ivanhoe is also building a new operation at Kipushi, a past producing zinc-copper mine in partnership with Congo’s state-owned Gécamines. The company’s most advanced project, however, is Platreef platinum, located in South Africa.

The revised mining code, approved by the country’s parliament last week, would increase copper royalties from 2% to 3.5%, creating also a 50% “super-profits” tax if commodity prices rise much faster than expected.

Continue reading