Congolese President Joseph Kabila has enacted a new mining code which among others will see royalties for cobalt increase from 2 % to 10 %.
This development has not been received well by players in the cobalt industry in this Central African nation.
DRC alone supplies 2/3 of the world production and since 2002, mining companies have been enjoying a tax break, which means for 16 years taxes on mining have remained stable.
Cobalt is an essential metal used for the production of telephone batteries, computers and car batteries. Electric cars are also heavily dependent on this national resource.
On the business segment of the Morning Call, our Jean David Mihamle examines the impact of this move and throws light on why the government must ensure that proceeds from this mineral enure to the benefit of its people.
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