Congo submits draft mining code despite opposition

(Bloomberg) — Democratic Republic of Congo Mines Minister Martin Kabwelulu submitted a draft of a new mining code to the government in the face of opposition from the industry lobby.

After a year of negotiations with mining companies, the ministry asked the government to ready the draft and send it to parliament so it can be discussed by lawmakers during the next session, which begins in mid-March, Kabwelulu said in a speech at a mining conference in Cape Town on Tuesday.

"We have taken their concerns into account," Kabwelulu said, referring to the country's Chamber of Mines. "What we didn't want was to extend the delay any further."

Congo wants to boost income from some of the world's biggest mining companies, including Glencore Plc, Freeport McMoran Inc. and AngloGold Ashanti Ltd., by raising taxes and royalties for miners. The Central African country is vying with southern neighbor Zambia to be the continent's top copper producer.

The government last week "unilaterally" halted discussions about the code with the mining industry and is proceeding with draft legislation that has not been seen in its complete form, the Chamber of Mines said in a statement on Monday.

"Significant progress has been made, with only the royalty and stability issues still outstanding," the chamber said. The halting of consultations poses "a material threat to further investment," it said.

Mining companies may still suggest changes to the new code as it is debated in parliament, Kabwelulu said. "To say that we suspended the negotiations — I was very surprised," he said. "The negotiations weren't suspended.