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*Sounds like the Chamber of Mines have their hands full, still busy working out the "Nuts & Bolts" of the TAX system that's fair and reasonable, as

The Chamber of Mines calls for tax relief





Partner companies feel asphyxiated by the multiplication of control missions

For a first, the Chamber of Mines of the Democratic Republic of the Congo emerged from its cocoon yesterday.

Operational since March 24, 2011, it organized its very first press conference this Wednesday, December 22 in Kinshasa.

An opportunity for its members to present the issues of the moment and to denounce the excessive harassment that plagues the business climate in the DRC.

President of the Chamber of Mines, Louis Watum was delighted with the dynamic underlying corporate citizen partners at a time when we are witnessing an improvement in mine curves on the international market.

At first glance, he observes, the figures make you dream.

Since last year, in fact, the improvement in mine curves has generated 6 billion dollars in the DRC, assures Louis Watum.

In addition, he adds, mining royalties have brought more than 1.6 billion in the public treasury compared to the data of the last three years.

The province of Lualaba having mobilized, by itself, 90% of these royalties.

Excessive tax deductions

Encouraging, these positive signals would have contributed even more to the public purse and would have further improved the social status of the Congolese if the business climate was right for it, Louis Watum notes.

But unfortunately !

The enthusiasm of mining operators in the DRC comes up against a hostile environment, characterized by violations of the Mining Code.

As evidenced by the excessive tax levies, around seven, which do not fall under the new Mining Code, deplores the boss of the Chamber of Mines.

In addition to the many taxes and regular taxes, mining contractors are also required to comply with the harassment of many public services which take turns all day long, criticizes Louis Watum.

17 control missions carried out in the East!

To date, informs the Secretary General of the Chamber of Mines, 17 (economic) control missions have been carried out in the mining areas, located further east of the country.

To these are added other incursions by state services that have nothing to do with the Mining Code, much less with the economic side, he comments.

These tax increases are now pushing many investors to settle in neighboring countries or the surrounding area, causing a significant shortfall for the Congolese economy, argues Louis Warum.

Hence, the heartfelt cry of the president of the Chamber of Mines: the plea of mining operators who are keen on reducing tax levies and especially an attractive tax system.

It is particularly in this context that mining companies, which operate in the DRC, could be encouraged to continue to invest in road, educational, health, energy infrastructure ... to boost the country's development, estimates a member of the Chamber's office mines.

For a permanent dialogue

"As a promising sector, mines could effectively boost the Congolese economy if the authorities put their efforts into it.

Especially at this time when we are witnessing a rush for cobalt and its derivatives, of which the DRC has the largest deposit on the planetary chessboard.

A potential estimated at 80%, a real boon for manufacturers who want to produce and use electric batteries, ”explains an analyst.

In the DRC chamber of mines, it is believed that a way out is possible.

It is in this context that Louis Watum recommends a permanent dialogue within a triptych, made up of governors, entrepreneurs and local communities.





Food for thought on the Road to Mining Manono

Frank